The SEC brought an enforcement action claiming that XRP was a security, and therefore all of the defendants sold securities without registering them, in violation of Section 5 of the Securities Act. The court held that the sales to institutional investors were sales of securities, but not the remaining sales.
I’ll start with: The holding makes no sense, but to understand where it’s coming from, you need to understand the arguments, which are similar to those made in other crypto cases.
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‘Enforcement 40’ for 2020
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