XRP Securities Controversy Reignites: Ripple CTO Says SEC Theory "Weakened" by Court Ruling

Odaily Ripple CTO Emeritus David Schwartz stated that although the SEC acknowledges that XRP itself is not inherently a security, its legal theory still treats XRP as a security, on the grounds that holders expect to profit from Ripple's efforts. Former SEC San Francisco office regional director Marc Fagel said the case targets Ripple's sales of XRP, not the XRP token itself. He believes the SEC only claims that Ripple sold XRP as a security.

Schwartz countered that the SEC's argument regarding programmatic sales on exchanges cannot be solely explained by "Ripple selling XRP as a security," because buyers typically do not know the seller's identity and may not have encountered Ripple's statements. The court ultimately differentiated between transaction types, ruling that certain institutional sales constituted investment contracts, while Ripple's programmatic sales on exchanges did not. Schwartz believes this indicates that the court narrowed the SEC's broader theory. (News.bitcoin)