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.
‘Enforcement 40’ for 2020
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