Ripple (XRP) News: Legal Expert Supports Ripple’s Argument; XRP Escrow Freeze Justified in SEC Battle
The post Ripple (XRP) News: Legal Expert Supports Ripple’s Argument; XRP Escrow Freeze Justified in SEC Battle appeared first on Coinpedia Fintech News
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.
Can Fines and Locking Away Escrow Funds Become a Reality for Ripple?
The discussion was sparked by a tweet from an XRP community member who outlined their dream scenario for the case. According to their proposal, Ripple should be fined, with a significant portion of the company’s escrow funds handed over to the SEC and locked away permanently. Additionally, they suggested that all circulating XRP should be classified as a commodity going forward.
Surprisingly, Fagel, a former attorney, and former SEC director, voiced his support for this viewpoint, deeming it “reasonable enough.” His alignment with this opinion adds an interesting perspective to the ongoing legal discourse surrounding Ripple’s case.
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.
What’s Next in the Ripple-SEC Battle?
Interestingly, Fagel believes that the SEC’s statement aligns with the policy and intent of securities laws. However, he acknowledged the uncertainty surrounding its support from legal precedents. Overall he also emphasized the complexity of 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.
In the meanwhile, as the Ripple-SEC legal battle continues, the implications for the classification of XRP and the desired outcome of the case remain subjects of great interest and debate among members of the cryptocurrency community.
