XRP Community Should Be Agnostic on Ripple, Believes SEC Veteran

As a seasoned analyst with over two decades of experience in the financial industry and a keen eye for regulatory developments, I find myself cautiously optimistic about the recent Ripple ruling. While the decision by Judge Torres to classify secondary XRP sales as not securities is certainly a step in the right direction, I remain skeptical about the SEC’s next move.


As the U.S. Securities and Exchange Commission (SEC) nears its October 7th decision on appealing the recent XRP ruling, XRP holders eagerly anticipate the agency’s next move. The initial verdict, declaring that secondary XRP transactions are not considered securities, was initially celebrated as a significant legal victory for Ripple. However, some experts caution that this enthusiasm might be a bit hasty.

The distinction Judge Torres made between institutional and programmatic token sales has faced challenges, including being rejected by another Judge, Judge Rakoff. While Ripple is still celebrating the decision as a win for the token’s legal clarity, SEC veterans like Marc Fagel have suggested that XRP holders should take a more neutral stance.

In a somewhat sarcastic manner, Fagel, a former regional director at the SEC, notes that, as per the court, ordinary XRP holders don’t depend on Ripple for their investment decisions. He emphasizes that the resolution of Ripple’s legal disputes should not significantly alter the community’s perspective on the matter.

It’s fascinating that so many people care. According to the court, a reasonable XRP holder isn’t relying on Ripple’s efforts, and thus should be completely agnostic on what happens to Ripple.— Marc Fagel (@Marc_Fagel) September 30, 2024

For individuals within the XRP community, this viewpoint holds significant weight as the token’s value and general market opinion frequently correlate with Ripple’s legal standing.

Despite some lingering regulatory doubts, it’s widely held that the real worth of XRP is found in its practical applications and business integration. These elements might continue to thrive independently of Ripple’s ongoing court battles.

As the looming deadline from the Securities and Exchange Commission (SEC) approaches, I find myself amidst a divided crypto community regarding the potential appeal of their ruling. Some voices in the industry speculate that the SEC may seek further clarification on discrepancies in the court’s decision-making process, while others, such as the former SEC Division Chief Littman, predict that the agency might opt to downplay the significance of the case instead.

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2024-10-01 15:32