Mini Alt Season
Final Thoughts on Ripple Decision
In June, we identified the Ripple case as a possible catalyst for altcoins, as indications of progress for the defendants surfaced. Just last week, Ripple achieved a partial victory, likely benefiting altcoins targeted by the SEC and potentially prompting a shift towards a more legislative approach rather than an enforcement-focused one.
The court ruled that Ripple Labs' transactions of $XRP to institutional investors constituted securities transactions. However, programmatic sales on exchanges, distributions to employees, and other secondary sales from Ripple Labs executives were not considered securities transactions. The classification depended on transaction nature and participants' awareness.
Importantly, the decision clarifies that tokens with characteristics mirroring XRP are not automatically classified as securities. Instead, it emphasizes the need to consider the specific circumstances surrounding the sale and distribution of the token in question.
Reports you may have missed
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