In a recent exchange on social media platform X, a notable dialogue occurred between prominent lawyer and digital asset enthusiast Bill Morgan and XRP Youtuber Moon Lambo. The discussion centered around the complexities of secondary sales in the ongoing litigation involving Ripple and the U.S. Securities and Exchange Commission (SEC).
This legal conversation sheds light on the interpretation of Ripple’s sales and their impact on secondary market transactions, a subject that has gained significant attention within the cryptocurrency community.
Bill Morgan’s response, directed at Moon Lambo, aimed to clarify some misconceptions regarding secondary sales and Ripple’s involvement in such transactions. Morgan emphasized that Judge Torres, who presided over the summary judgment decision in the Ripple case, did not explicitly rule on secondary sales as they pertain to retail investors trading XRP on exchanges.
Morgan wrote, “There is some confusion in this matter about the issue of secondary sales. Some people treat Ripple’s sales by programmatic means to retail investors via exchanges as secondary sales. Judge Torres did not rule on secondary sales in the sense of sales made by you and I if we go onto an exchange and sell XRP to other retail investors.”
The distinction between Ripple’s programmatic sales and transactions involving individual retail investors is critical, as it highlights the nuanced legal approach taken by Judge Torres in her decision.
Morgan further clarified that Judge Torres explicitly stated in a footnote that the issue of secondary sales involving individual retail investors was not decided in the summary judgment. Consequently, this matter cannot be part of the ongoing appeal.
Scope of the Appeal: What’s at Stake?
Morgan’s tweet also addressed potential developments in the appeal process, stating that while the appeal is primarily concerned with programmatic sales, it may extend to other issues such as penalties, injunctions, and disgorgement.
He mentioned that he had previously discussed these possibilities with Marc Fagel, a former SEC enforcement attorney. Both agreed that while the appeal would likely focus on programmatic sales and distributions, there remained some uncertainty.
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Impact on Retail Investors and Future Legal Actions
Moon Lambo, in his original tweet, expressed a similar understanding, acknowledging that multiple attorneys had informed him that an appeal would likely only involve transactions conducted by Ripple.
He agreed with the notion that Ripple’s programmatic sales could be classified as secondary market transactions but emphasized that this would not necessarily affect retail investors who trade XRP on exchanges.
Moon Lambo also noted that any impact on secondary market transactions would likely require a separate lawsuit, potentially involving the SEC’s actions against cryptocurrency exchanges. “There would need to be a separate lawsuit for that, and I think that’s part of the purpose for the SEC attacking cryptocurrency exchanges,” he added.
Both Bill Morgan and Moon Lambo acknowledged the complexity of the legal issues surrounding Ripple and XRP, with Moon Lambo seeking further clarification from attorneys closely following the case. He tagged several prominent legal experts in the digital asset space, hoping to ensure accuracy in his understanding of the ongoing litigation.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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