James

<p>In the latest developments surrounding the Ripple case, the SEC has announced it will challenge its partial loss in court against the XRP issuer. The <a href="https://coinpedia.org/news/sec-appeals-ripple-ruling-whats-next-for-ripple-vs-sec-lawsuit/" target="_blank" rel="noreferrer noopener">regulator filed a notice of appeal,</a> more than a year after a federal judge ruled that the sale of Ripple’s XRP on public exchanges does not qualify as a security.&nbsp;</p>   
<p><a href="https://www.youtube.com/watch?v=c3o1OPFTwo0" target="_blank" rel="noreferrer noopener nofollow">Attorneys Kristi Warner and James Murphy</a> (@Metalawman) sat down to discuss the SEC's appeal and its implications. During the conversation, they explored the possibility of filing a cross appeal, which sparked James's thoughts on the matter.</p>   
<h3 class="wp-block-heading" id="h-james-murphy-s-take-on-cross-appeals"><strong>James Murphy’s Take on Cross Appeals</strong></h3>   
<p>James expressed strong support for the idea of a cross appeal in this case. Despite being in the minority, he believes that the contracts under which XRP was sold to institutions do not constitute investment contracts.</p>   
<h3 class="wp-block-heading" id="h-the-nature-of-xrp-sales"><strong>The Nature of XRP Sales</strong></h3>   
<p>James explained that the entities purchasing XRP were buying at wholesale prices—lower than retail market rates—with the goal of reselling at a markup. He argued that these transactions are not investments in Ripple or its business. Instead, they resemble typical wholesale practices where profits come from reselling commodities, not from investing in a company's success.</p>   
<h3 class="wp-block-heading" id="h-distinction-between-investment-and-commodity-transactions"><strong>Distinction Between Investment and Commodity Transactions</strong></h3>   
<p>James pointed out that if institutions wanted to invest in Ripple directly, they could buy shares in the private company. This would qualify as a securities transaction. In contrast, purchasing XRP at a discount for resale to retail buyers does not equate to investing in Ripple.</p>   
<h3 class="wp-block-heading" id="h-advocating-for-a-cross-appeal"><strong>Advocating for a Cross Appeal</strong></h3>   
<p>James shared his desire to see Ripple file a cross appeal, arguing that even though written contracts exist, the sales to institutions were not investment contracts. He maintained that Ripple was simply selling a commodity to wholesalers, who then profited by marking up the price for retail sales.</p>   [post_titles_links postid="362839"]

Ripple Vs SEC Appeal News: Legal Expert Says Ripple Should Cross-appeal; But Can They Win?

Table of Contents

CoinPedia News

Other articles published on Oct 9, 2024

Transak Reveals Ongoing Partnership with MetaMask

Polkadot’s Rivals: 5 Blockchain Networks Challenging the Status Quo

Treasure DAO Announces New Testnet 'Topaz' in Migration to ZKsync

Weekly Article Recap: 9/16-9/20

How To Transform Your Crypto Wallet Into A Money Generator With Cardano (ADA), Chainlink (LINK) A...

Shiba Inu Burn Rate Jumps 450%, SHIB Price Rally To $0.0001 Next?

Join our free newsletter for daily crypto updates!