Unchained The Chopping Block: Should XRP Holders Really Be Rejoicing? - Ep. 519
Jul 15, 2023
In this discussion, Stephen Palley, a litigation partner at Brown Rudnick LLP specializing in crypto law, shares keen insights on the recent Ripple case ruling. He unpacks why retail sales of XRP were deemed non-violative of securities laws, and the implications of Judge Torres’ surprising ‘Footnote 16.’ Palley addresses whether the SEC might appeal, and warns that this ruling shouldn't be seen as a green light for investments. The conversation also touches on Coinbase and Kraken's recent decisions to re-list XRP amidst this regulatory turmoil.
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Episode notes
Howey Test Focuses on Transaction, Not Asset
- Assets themselves are not securities.
- The nature of the sale or contract determines the security status.
XRP Not a Security Per Se
- XRP's ruling suggests it isn't a security itself.
- Each transaction's nature determines its security status.
Expect Appeals, Prepare for Trial
- Expect an appeal from the SEC regarding the Ripple case ruling.
- Prepare for potential trial and subsequent appeals, lasting several years.