{"id":130158,"date":"2025-05-28T10:15:50","date_gmt":"2025-05-28T10:15:50","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=130158"},"modified":"2025-05-28T10:15:50","modified_gmt":"2025-05-28T10:15:50","slug":"fungible-cryptos-in-secondary-sales-are-not-securities-ripple-tells-sec","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=130158","title":{"rendered":"Fungible cryptos in secondary sales are not securities, Ripple tells SEC"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsRipple, the blockchain company behind XRP, argued that fungible cryptocurrencies are not securities when transferred in secondary transactions in a recent letter sent to the US Securities and Exchange Commission (SEC).<br \/>\nIn its May 27 letter, Ripple cited US attorney and crypto law thought leader Lewis Cohen to support its claim. In his widely cited 2022 paper, \u201cThe Ineluctable Modality of Securities Law: Why Fungible Crypto Assets Are Not Securities,\u201d he wrote:<br \/>\n\u201c[T]here is no current basis in the law relating to \u2018investment contracts\u2019 to classify most fungible crypto assets as \u2018securities\u2019 when transferred in secondary transactions.\u201d<br \/>\nIn his paper, Cohen explained that in secondary transactions, an investment contract transaction is generally not present. He further claimed that fungible cryptocurrencies \u201cneither create nor represent the necessary cognizable legal relationship between\u201d a legal entity and the holder that is the \u201challmark of a security.\u201d<br \/>\nRelated: Banking groups ask SEC to drop cybersecurity incident disclosure rule<br \/>\nSEC\u2019s \u201cnew paradigm\u201d<br \/>\nRipple also referenced SEC Commissioner Hester Peirce&#8217;s May 19 \u201cnew paradigm\u201d speech. She said she\u2019d been voicing her dissent with the regulator\u2019s approach to crypto, adding:<br \/>\n\u201cHaving emerged from the crypto dissent years, I am glad to be able speak to you today as the head of the Commission\u2019s Crypto Task Force about a rational and coherent path forward and a new paradigm at the SEC.\u201d<br \/>\nPeirce said that the SEC\u2019s \u201capproach to crypto in recent years has evaded sound regulatory practice and must be corrected.\u201d She also said that most cryptocurrencies are not securities, adding:<br \/>\n\u201cMost currently existing crypto assets in the market are not [securities]. My supplemental answer is that economic realities matter and non-security crypto assets may be distributed as part of an investment contract, which is a type of security.\u201d<br \/>\nRipple\u2019s long fight with the SEC<br \/>\nThe SEC had viewed a large portion of digital assets as securities, with the regulator\u2019s former chair, Gary Gensler, stating in 2023 that most of the crypto market falls under the securities bracket. This stance led to a protracted legal battle between the SEC and Ripple.<br \/>\nThe lawsuit first began at the end of 2020, when the SEC took action against Ripple and its executives, claiming that XRP sales constituted unregistered security offerings. Still, after the government\u2019s stance on crypto changed with the election of current US President Donald Trump, Ripple has mostly won the battle, with the SEC recently dropping its appeal against a ruling favorable to the company.<br \/>\nIn its recent letter to the SEC, Ripple also cited a ruling in the case noting that \u201cthe court held that certain of Ripple\u2019s historical institutional sales of XRP were investment contracts,\u201d while the secondary sales were not. Furthermore, the judge \u201cdetermined that XRP itself is not a security.\u201d<br \/>\nMagazine: XRP win leaves Ripple and industry with no crypto legal precedent set<a href=\"https:\/\/cointelegraph.com\/news\/ripple-sec-letter-crypto-not-securities?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsRipple, the blockchain company behind XRP, argued that fungible cryptocurrencies are not securities when transferred in secondary transactions in a recent letter sent to the US Securities and&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/130158"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=130158"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/130158\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=130158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=130158"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=130158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}