Ripple and XRP Triumph May Be Cut Short on Appeal, Thinks SEC Veteran

In a recent court ruling, Ripple, the blockchain payments firm, emerged with a significant victory as it determined that the sale of XRP to retail investors did not amount to an offering of investment contracts. However, the court determined that their sale to institutional buyers was indeed an unregistered offer and therefore an investment contract. Marc Fagel, a former SEC regional director and experienced attorney, is of the opinion that this success for Ripple and XRP may be short-lived if the case is brought up again at the Second Circuit Court. He argues that by comparison, when purchasing a stock you are unaware of the seller’s identity and therefore it is hard to understand the adverse outcome between an investment contract and simply acquiring an asset.>Fagel believes this is essentially setting an example, both positive and negative, causing conclusions for either side involved in the dispute. As crypto followers acknowledge the clearance of XRP’s secondary sales, Fagel holds disbelieving views in regards to their intent. He explains that a consent is warranted if a ‘reasonable investor’ foresees prospective lucidity from a third party. In light of his time as an SEC director, Fagel stands on strong ground in addressing such arguments as he’s of the belief that the court’s outcome might be changed with the Second Circuit Court. Nevertheless, the process of appeal is foreseen as a long one with much to consider regarding Ripple’s coup.

Robert Wilson author
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