Ripple, the blockchain company behind the XRP, argued that fungible cryptocurrencies were not security when transferred to the second transaction in a recent letter sent to the US Securities and Exchange Commission (SEC).
By May 27 LetterRipple mentioned US lawyer and Crypto law leader Lewis Cohen to support his claim. In its widely mentioned 2022 Paper“The irreversible modality of the security law: why fungible crypto assets are not security,” he wrote:
“(T) Here is the current law -related basis related to ‘investment contracts’ to classify most fungible crypto assets as’Security‘When moved to the second transaction. “
In his role, Cohen explained that in the second transaction, a investment contract transaction is generally not present. He further said that fungible cryptocurrencies “also do not create or represent the necessary legal relations between” a legal creature and the one that is the “sign of a security.”
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“New Paradigbar” by Sec
Ripple also identified the SEC Commissioner Hester Peirce’s May 19 “New Paradigma” Speaking. He said he was expressing his misunderstanding on the crypto regulator approach, adding:
“When it appeared from the years of the Crypto dispute, I am glad to talk to you today as the commission’s Crypto Task Force leader about a rational and coherent path and a new SEC paradigm.”
Peirce said the “SEC approach to crypto in recent years has avoided sound regulation skills and should be corrected.” He also said that most cryptocurrencies are not security, adding:
“Most currently existing crypto assets in the market are not (security). My supplement answer is that economic objects and non-security crypto assets can be distributed as part of an investment contract, which is a kind of security.”
Ripple’s long fighting with the SEC
The SEC viewed a large portion of digital assets as security, along with former regulator seat Gary Gensler, who said in 2023 that Most of the crypto market falls under the securities bracket. This bearing leads to a protected legal battle between the SEC and Ripple.
The lawsuit first began at the end of 2020When the SEC acted against Ripple and its executives, claimed that XRP sales form unregistered security offerings. However, after the government’s stance in Crypto Dropping its appeal against a ruling -like -like -in company.
In its recent letter to the SEC, Ripple also mentioned a decision in the case that it was noted that “the court held that some of the historical institutional sales of Ripple of XRP were investment contracts,” while second sales were not. Moreover, the judge “decided that the XRP itself was not a security.”
Magazine: XRP Win leaves ripple and industry without crypto legal previously set
