Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis on all things related to the stock market, trading, and Wall Street. Today, we’re diving into the recent testimony by Professor Lee Reiners before Congress regarding the SEC vs. Ripple case.
During his testimony, Prof. Reiners highlighted a crucial footnote from the Programmatic Sales of XRP ruling, which stated the importance of the totality of circumstances and the economic reality of each specific contract, transaction, or scheme in determining if secondary market sales of XRP constitute offers and sales of investment contracts.
What’s interesting is that while accredited and institutional investors are afforded the protections of US securities laws in this ruling, retail investors are left without those same safeguards. This disparity has raised concerns among many in the crypto community.
Prof. Reiners also pointed out that Judge Torres’ emphasis on the need for cryptocurrency buyers in the secondary market to know the identity of the seller for there to be an expectation of profit has been disregarded by multiple federal judges, including two of her peers in the Southern District of New York.
Moreover, the implications of rulings in cases like SEC v Coinbase and SEC vs. Terraform Labs are significant. While the Coinbase case may be more widely known, it’s worth noting that Judge Rakoff, who presided over the Terraform Labs case, openly rejected the Programmatic Sales of XRP ruling.
At Extreme Investor Network, we pride ourselves on providing you with unique insights and analysis that you won’t find anywhere else. Stay tuned for more updates on this evolving story and how it may impact the crypto and securities markets. Happy investing!