{"id":2223,"date":"2024-08-30T08:30:29","date_gmt":"2024-08-30T08:30:29","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=2223"},"modified":"2024-08-30T08:30:29","modified_gmt":"2024-08-30T08:30:29","slug":"pro-xrp-lawyer-declares-victory-as-judges-dismiss-secs-crypto-stance","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=2223","title":{"rendered":"Pro-XRP Lawyer Declares Victory As Judges Dismiss SEC\u2019s Crypto Stance"},"content":{"rendered":"

In a series of pointed criticisms leveled against the US Securities and Exchange Commission (SEC), pro-XRP lawyer Bill Morgan has highlighted<\/a> what he views as repeated judicial victory against the SEC\u2019s approach to crypto regulation by enforcement. His remarks draw on several recent cases where federal judges have questioned the SEC\u2019s stance that digital tokens such as XRP constitute securities.<\/p>\n

Why The SEC Lost: Pro-XRP Lawyer<\/h2>\n

Bill Morgan\u2019s analysis cites three distinct federal court rulings which collectively undermine the SEC\u2019s long-standing assertion that cryptocurrencies should be treated similarly to traditional securities under the law. Morgan shared his comments via X, emphasizing the significance of these judicial opinions in shaping the future regulatory landscape of cryptocurrencies.<\/p>\n

In the SEC vs. Ripple case<\/a>, Judge Analisa Torres notably differentiated the digital currency XRP from traditional securities. Morgan remarked, \u201cJudge Torres in SEC v Ripple told the SEC that the XRP token itself is not a security.\u201d He also cited judge Torres who made clear: \u201cXRP, as a digital token, is not in and of itself a \u2018contract, transaction[,] or scheme\u2019 that embodies the Howey requirements of an investment contract.<\/p>\n

Further judicial skepticism arose in the SEC vs. Payward Inc. (Kraken case<\/a>), where Judge William Orrick cautioned the SEC against conflating crypto tokens with investment contracts. Orrick\u2019s statement was particularly striking: \u201cOrange groves are no more securities than cryptocurrency tokens are,\u201d he said.<\/p>\n

Judge Orrick also warned the SEC to maintain a clear distinction between the crypto asset itself and the sales of the asset. \u201cThe SEC should be careful going forward to maintain this distinction. To the extent it tries to argue that the individual tokens that form the basis of transactions on Kraken are investment contracts, or are themselves securities, its argument cannot proceed.\u201d<\/p>\n

Morgan also referenced the SEC vs. Binance case, where Judge Ketanji Brown Jackson dismissed the SEC\u2019s theory that a crypto token is the embodiment of an investment contract, clarifying that it could, under certain circumstances, be merely the subject of an investment contract.<\/p>\n

\u201cIn SEC vs Binance Judge Jackson completely rejected the SEC\u2019s embodiment theory that the crypto token is the embodiment of an investment contract rather than possibly in certain circumstances being the subject of an investment contract,\u201d Morgan noted.<\/p>\n

His critique culminates in a rhetorical question that challenges the SEC\u2019s current regulatory framework: \u201cHow many more judicial comments are needed of this kind before the SEC jettisons the discredited embodiment theory or any forlorn hope the courts will ever regard the crypto asset itself as a security?\u201d<\/p>\n

Remarkably, it does not seem to be enough so far. In a highly controversial action, the SEC sent a Wells notice to the NFT marketplace OpenSea on Wednesday, alleging that the NFTs traded on the platform could be classified as unregistered securities.<\/p>\n

At press time, XRP traded at $0.5605.<\/p>","protected":false},"excerpt":{"rendered":"

In a series of pointed criticisms leveled against the US Securities and Exchange Commission (SEC), pro-XRP lawyer Bill Morgan has highlighted what he views as repeated judicial victory against the SEC\u2019s approach to crypto regulation by enforcement. His remarks draw on several recent cases where federal judges have questioned the SEC\u2019s stance that digital tokens […]<\/p>\n","protected":false},"author":0,"featured_media":2224,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-2223","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/2223"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2223"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/2223\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/2224"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}