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 <p class="is-style-lead">Ripple clarified six misconceptions about the recent ruling. After it, XRP and Bitcoin are the only digital assets that aren’t considered securities in the US.</p> 
 <p>On July 13, Judge Torres ruled in the trial of Ripple v. SEC, stating that Ripple is not a security.</p> 
 <p><strong>The first</strong> point that the company addressed in its Q2 report is that the decision issued by Judge Torres wasn’t split.</p> 
 <p>The company said that it’s clear that the main point of the court decision was to understand if Ripple was or was not a security, and it has been clear that it’s not.</p> 
 <p><strong>The second</strong> misconception related to XRP being security in some settings but not others.</p> 
 <p>The company said that XRP is not a security, explaining, as the court said, that “XRP, as a digital token, is not in and of itself… an investment contract.”</p> 
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  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Bank of England releases new paper on Ripple use cases 
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 <p><strong>The third</strong> <a rel="noopener noreferrer nofollow" title="misconception" href="https://thebittimes.com/tag/misconception.html">misconception</a> was related to a share of stock always being taken as a security. Hence, it makes no sense that certain transactions in XRP are securities and others are not.</p> 
 <p>On this point, Rippled said that an investment contract is a particular type of security and must be analyzed on a transaction-by-transaction basis.</p> 
 <p><strong>The fourth</strong> misconception concerns the ruling protecting only sophisticated institutions, not retail buyers.</p> 
 <blockquote class="wp-block-quote"> 
  <p>“The court ruled on the reach of the SEC’s jurisdiction, which stops once there are no securities to regulate. Where there is no investment contract, there is no security; and where there is no security, there is no role for a securities commission. Like a hammer, the SEC wants everything to be a nail (or in this case, a security), but the law does not go as far as the SEC would like it to go.”</p> <cite>Ripple’s statement</cite> 
 </blockquote> 
 <p><strong>The fifth</strong> <a rel="noopener noreferrer nofollow" title="misconception" href="https://thebittimes.com/tag/misconception.html">misconception</a> is related to the decision that makes it impossible for Ripple to do business. Ripple explained that since the <a rel="noopener noreferrer nofollow" title="lawsuit" href="https://thebittimes.com/tag/lawsuit.html">lawsuit</a> by the SEC in December 2020, the company has been doing business mostly with companies outside the US.</p> 
 <p><strong>The last</strong> <a rel="noopener noreferrer nofollow" title="misconception" href="https://thebittimes.com/tag/misconception.html">misconception</a> concerns the court ruling against Ripple on its fair notice defense.</p> 
 <p>On this point, Ripple added:</p> 
 <blockquote class="wp-block-quote"> 
  <p>“The SEC moved for summary judgment on Ripple’s fair notice defense, which was based, among other things, on internal emails from the SEC indicating that its then-head of Corporate Finance ignored multiple warnings that his speech contained <a rel="noopener noreferrer nofollow" title="Category Analysis" href="https://thebittimes.com/analysis.html">Analysis</a> divorced from the Howey factors and would create “greater confusion.”&nbsp;</p> <cite>Ripple’s statement</cite> 
 </blockquote> 
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Pro-crypto lawyers clarify XRP’s security status 
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Ripple clarifies six misconceptions about the SEC lawsuit

TheBitTimes

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