The post ‘XRP Holders Are Free’: Former SEC Lawyer Says Gary Gensler’s Lawsuit is ‘Strictly’ Against Ripple appeared first on Coinpedia Fintech News
It is widely speculated that the U.S. Securities and Exchange Commission (SEC) will appeal the 2023 ruling on Ripple’s XRP sales. A former SEC attorney, cited by Fox Business reporter Eleanor Terrett, suggested that the agency is likely to challenge the July 2023 decision that deemed Ripple’s programmatic sales of XRP as non-securities.
An internet user expressed frustration, questioning the SEC’s role in protecting consumers, especially with XRP holders already affected by the lawsuit. The user criticized the SEC for seemingly targeting consumers without any evidence of fraud or misconduct by Ripple, suggesting it was a waste of taxpayer money.
On the other hand, former SEC lawyer Marc Fagel explained that the case is focused solely on Ripple, and XRP holders are not impacted, as they are free to use their XRP without any restrictions. Marc wrote on X, “The case is strictly against Ripple. It has nothing to do with XRP holders, who are free to do whatever they want with their XRP, so why do you even care?”
He also added, “As of now, they can yell at the SEC for being too aggressive, except when a crypto firm blows up, and they can yell at the SEC for not being aggressive enough. Why give that up, and have to take the blame for the next inevitable crypto failure?”
Ripple has been at the center of a legal battle with the SEC, which accused the company of violating securities laws by selling XRP without proper registration. Despite Ripple’s win regarding secondary sales, it was still fined $125 million for other regulatory breaches, a significant reduction from the original SEC demands.
Stuart Alderoty, Ripple’s lead attorney, stated that while an appeal is expected, it is unlikely to affect XRP’s legal status.