Ripple Likely Sold XRP in an Unregistered Securities Offering
The former CFTC chair’s analysis stating that Ripple’s XRP is not a security might be wrong.
In recent months, a number of class-action lawsuits have been filed against Ripple for selling its XRP token in an unregistered securities offering.
So far, the United States Securities and Exchange Commission has not published any official statement on this, which has kept everyone guessing.
To help put an end to the uncertainty, Chris Giancarlo, former chairman of the Commodity Futures Trading Commission, published a paper last week arguing that Ripple’s XRP is not a security.
Giancarlo is famous for helping establish the CFTC’s stance that Bitcoin (BTC) and Ether (ETH) are not securities.
So, it would seem that he is the right person to be making this case.The only trouble is that Giancarlo is no longer working for the CFTC he is now in private practice.
Not only that, but he is also currently working for a law firm that is on Ripple’s payroll.
Given the clear conflict of interest here, before reading the paper I prepared myself to expect some bias.
However, I never could have imagined how bad it would be.
I know this kills the suspense, but there’s no way to mince words here: The case made in Giancarlo’s paper for Ripple’s sale of XRP to not be considered a securities offering is nonsensical and absurd, so much so that it boggles my mind that Giancarlo was willing to publicly put his name on it.
Read on in today’s article as I go through Giancarlo’s analysis of whether or not the sale of XRP is a securities offering along with a real analysis of whether or not it is.
How to know if a token offering is a securities offering
The Howey Test is the SEC’s principal method of determining whether or not an investment is a securities offering.
If it is, the issuer must either register the offering with the SEC or ensure that the offering fits within a recognized registration exemption.
As a quick refresher, the Howey Test comprises four prongs that were established in a 1946 Supreme Court case.
The ruling was that an investment contract exists where there is:
In order for the sale of XRP to be considered a securities offering, it must meet every one of these prongs.
If the offering fails even one of them, then it is not considered a securities offering.
Read on to see the case for how XRP stacks up against the Howey Test.
Read the full topic at
https://cointelegraph.com/news/ripple-likely-sold-xrp-in-an-unregistered-securities-offering
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In recent months, a number of class-action lawsuits have been filed against Ripple for selling its XRP token in an unregistered securities offering.
So far, the United States Securities and Exchange Commission has not published any official statement on this, which has kept everyone guessing.
To help put an end to the uncertainty, Chris Giancarlo, former chairman of the Commodity Futures Trading Commission, published a paper last week arguing that Ripple’s XRP is not a security.
Giancarlo is famous for helping establish the CFTC’s stance that Bitcoin (BTC) and Ether (ETH) are not securities.
So, it would seem that he is the right person to be making this case.The only trouble is that Giancarlo is no longer working for the CFTC he is now in private practice.
Not only that, but he is also currently working for a law firm that is on Ripple’s payroll.
Given the clear conflict of interest here, before reading the paper I prepared myself to expect some bias.
However, I never could have imagined how bad it would be.
I know this kills the suspense, but there’s no way to mince words here: The case made in Giancarlo’s paper for Ripple’s sale of XRP to not be considered a securities offering is nonsensical and absurd, so much so that it boggles my mind that Giancarlo was willing to publicly put his name on it.
Read on in today’s article as I go through Giancarlo’s analysis of whether or not the sale of XRP is a securities offering along with a real analysis of whether or not it is.
How to know if a token offering is a securities offering
The Howey Test is the SEC’s principal method of determining whether or not an investment is a securities offering.
If it is, the issuer must either register the offering with the SEC or ensure that the offering fits within a recognized registration exemption.
As a quick refresher, the Howey Test comprises four prongs that were established in a 1946 Supreme Court case.
The ruling was that an investment contract exists where there is:
In order for the sale of XRP to be considered a securities offering, it must meet every one of these prongs.
If the offering fails even one of them, then it is not considered a securities offering.
Read on to see the case for how XRP stacks up against the Howey Test.
Read the full topic at
https://cointelegraph.com/news/ripple-likely-sold-xrp-in-an-unregistered-securities-offering
Follow me on
Twitter: https://twitter.com/cryptoexpert20
If you wont me to post your cryptocurrency article on my blog From the link
https://www.fiverr.com/cryptoexpert20/post-your-cryptocurrency-article-on-my-blog
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