Ripple CEO Brad Garlinghouse has recently recommended the recap of the court case shared by Ripple General Counsel Stuart Alderoty to clear confusion on what the court’s decision means.
According to Garlinghouse, since the Judge pronounced the final verdict of the long-standing lawsuit, there have different stories in the media. In order to clear this confusion, Ripple CEO recommended the Judgment’s recap shared by Stuart Alderoty.
Read Also: Ripple Wins SEC Lawsuit: Analyst Predicts Massive Surge for XRP, Targets $3
Brad Garlinghouse tweeted, “Seeing some confusion on what the Court’s decision means — here’s a recap from our legal eagle Stuart Alderoty.”
Seeing some confusion on what the Court's decision means — here's a recap from our legal eagle @s_alderoty https://t.co/qt58CuV1Ay
— Brad Garlinghouse (@bgarlinghouse) July 13, 2023
XRP Distributions That Constitute Investment Contract
According to Alderoty, as a matter of law, XRP is not a security. Also, the sales of XRP on exchanges are clearly not securities.
Moreover, sales of XRP by Ripple executives, such as Garlinghouse and Chris Larsen, are not securities. Distributions to developers, developers, charities and employees are also not securities.
“A huge win today – as a matter of law – XRP is not a security. Also a matter of law – sales on exchanges are not securities. Sales by executives are not securities. Other XRP distributions – to developers, to charities, to employees are not securities,” Stuart Alderoty noted.
XRP Distribution that Does Not Constitute Investment Contract
Ripple’s general counsel further stated that the only aspect declared by the Judge as an investment contract is the past sales of XRP to institutional investors.
Alderoty said the case is yet to end on this aspect. This implies that the case between Ripple and the SEC is yet to end. However, it’s now made clear that XRP is not a security, which represents a major victory for Ripple and XRP.
Stuart Alderoty noted:
“The only thing the Court found constitutes an investment contract is past direct XRP sales to institutional clients. There will be further court proceedings only on these institutional sales per the Court’s order.
“My absolute gratitude to the teams that have been working tirelessly on this matter for over the years. The Judge’s decision affirms so much of what this industry is fighting for, and shows that the SEC does not have unbounded jurisdiction over crypto. Maybe we can now start a rational conversation about crypto regulation in this country.”
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