The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has been a topic of intense scrutiny within the cryptocurrency community. In a recent development, renowned legal expert Mark Fagel has expressed his agreement with a controversial viewpoint put forth by a member of the XRP community, adding a new layer to the ongoing debate.
What did he say and why? Let’s explore.
A tweet from an influential member of the XRP community ignited a lively discussion on the ideal outcome of the case. According to their proposal, Ripple should face significant fines, with a substantial portion of the company’s escrow funds permanently handed over to the SEC and locked away. Furthermore, they suggest classifying all circulating XRP as a commodity moving forward.
Surprisingly, Marc Fagel, a former attorney and SEC director, voiced his support for this controversial viewpoint, considering it “reasonable enough.” By aligning himself with this opinion, Fagel offers a fresh and thought-provoking perspective to the ongoing legal discourse surrounding Ripple’s case.
“Sounds reasonable enough,” read Fagel’s post on Twitter.
The conversation gained momentum following the SEC’s recent articulation of their legal theory regarding secondary market sales, which was in response to a motion by Coinbase. The SEC argues that the economic nature of a transaction involving crypto asset security remains unchanged, even if the asset is made available for trading on platforms like Coinbase.
Read More: Coinbase CLO Slams SEC For Its Response To June Filing, Cites Shortcomings
Interestingly, Fagel believes that the SEC’s statement aligns with the policy and intent of securities laws. However, he acknowledges the uncertainty surrounding its legal precedents. Fagel emphasizes the complexities involved in determining whether successive token sales should be considered securities, particularly when considering factors such as a token’s utility and its potential transformation over time.
As the Ripple-SEC legal battle rages on, the classification of XRP and the desired outcome of the case remain subjects of great interest and debate within the cryptocurrency community.
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