Lewis Cohen, co-founder of DLx Law and a legal expert in cryptocurrency, breaks down the landmark ruling in the SEC vs. Ripple case. He discusses why XRP was deemed not a security for some buyers, a decision that may reshape crypto regulations. Lewis highlights the significance of distinguishing between programmatic and institutional sales, and how this ruling could influence future offerings across the industry. He also speculates on potential appeals and their implications for major exchanges like Coinbase.
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insights INSIGHT
Two Types of Sales
Judge Analisa Torres's order split the Ripple case into institutional sales and programmatic sales.
Institutional sales were deemed securities, while programmatic sales were not.
insights INSIGHT
Howey Test Application
Institutional sales met the Howey Test's four prongs due to direct investment, common enterprise, profit expectation, and dependence on Ripple Labs.
Programmatic sales, however, resembled secondary market transactions where buyers didn't directly invest in Ripple.
insights INSIGHT
Rejection of Morphing Concept
Judge Torres rejected the "morphing concept" where a token starts as a security and later changes.
She emphasized that a token isn't inherently a security but depends on the transaction's circumstances.
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Idealism, Greed, Lies, and the Making of the First Big Cryptocurrency Craze
Laura Shin
The Cryptopians delves into the story of idealists, technologists, and opportunists fighting to bring cryptocurrency to the masses. The book focuses on the founding of Ethereum by Vitalik Buterin and the subsequent crypto fever it created. It introduces readers to larger-than-life characters such as Buterin, Charles Hoskinson, and Joe Lubin, highlighting the personal and professional conflicts that shaped the early days of Ethereum. The narrative explores the booms, busts, and internecine wars within the crypto world, revealing it as a deeply personal struggle to influence the coming revolution in money, culture, and power.
The SEC and Ripple have been locked in a legal tug of war for years, stirring up waves of controversy and debate in the crypto community. Finally, Judge Analisa Torres has given an order establishing that XRP buyers trading on exchanges were not, in fact, engaging in a securities transaction, a decision that could have far-reaching implications for the industry. Lewis Cohen, co-founder of DLx Law, unpacks the details of this pivotal case and what it might mean for the future of cryptocurrency regulation.
Unchained 