John Reed Stark, the former head of the U.S. Securities and Exchange Commission’s Office of Internet Enforcement, recently became the latest industry voice to voice concern over the SEC’s lawsuit against Ripple. Stark realizes US District Judge Analisa Torres’ ruling, which found divestment in Ripple’s crypto undefined due to inherent programmatic sales structure, is worrisomely undecided. He believes this odd declaration creates a ‘quasi-security’ categorization depending on the investor’s sophistication or knowledge.
Stark argues what enticed the SEC to file the lawsuit was Ripple’s lapses in disclosing transactions to institutional participants, which Judge Torres asserted it constituted a security offering. Although an indefinite timeline is still held within the court for ordering a trial date in due course.