The post Ripple News: Can Kamala Harris Sell Donated XRP To Pay Campaign Debts? Legal Expert Answers appeared first on Coinpedia Fintech News
President-elect Donald Trump recently trolled Vice President Kamala Harris’ financially struggling presidential campaign, offering to help with her reported $20 million campaign debt. However, an interesting twist emerged in the discussion—one that involves XRP, the digital currency linked to Ripple.
Trump’s Offer to Pay Harris’ Campaign Debt
Trump, known for his sharp comments, made a playful offer to the GOP, suggesting they “do whatever we can do to help them” with Harris’ outstanding campaign debt.
This prompted a user to suggest that if Harris could sell some of her donated XRP (Ripple’s cryptocurrency), she might be able to cover a significant chunk of the debt. The idea? If the Securities and Exchange Commission (SEC) were to drop its legal appeal against Ripple and XRP, the price of XRP could rise enough to help her pay off the full amount.
SEC Case and XRP’s Potential Role
The suggestion to sell XRP hinges on the ongoing legal battle between Ripple Labs and the SEC. The SEC has argued that XRP is a security and should be regulated as such. However, if the SEC were to drop its case, many believe that the price of XRP could surge, potentially allowing Harris to use the profits to pay off her campaign debt.
Legal Expert Weighs In:
Marc Fagel, a former SEC lawyer, weighed in on the situation, stating that any XRP sales would be exempt from SEC registration, provided they aren’t tied to the issuer (Ripple). Fagel clarified that Harris, as a retail holder of XRP, would not need to worry about SEC regulations if she sold the token.
Issuer vs. Retail Holder: Fagel said that Harris, as a non-issuer of XRP, would be exempt from registration requirements under the Securities Act, similar to how any retail investor is free to sell their own XRP. He argued that the key issue isn’t the identity of the seller but whether the sales qualify as investment contracts under the Howey Test.
Ripple’s Legal Position: According to Fagel, the SEC’s claim that XRP is a security focuses on the issuer (Ripple), but Harris is not an issuer. Therefore, she could sell her XRP without falling under the same regulatory constraints that Ripple faces.
For the unversed, Ripple co-founder Chris Larsen previously added more than $10 million worth of XRP to a fund aimed at supporting Vice President Kamala Harris.