July 14, 2023

New Order in SEC vs. Ripple Over XRP Is a Win for Crypto: What Happens Now? - Ep. 518

48 minutes

The SEC and Ripple have been locked in a legal tug of war for years, stirring up waves of controversy and debate in the crypto community. Finally, Judge Analisa Torres has given an order establishing that XRP buyers trading on exchanges were not, in fact, engaging in a securities transaction, a decision that could have far-reaching implications for the industry. Lewis Cohen, co-founder of DLx Law, unpacks the details of this pivotal case and what it might mean for the future of cryptocurrency regulation.

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.

Show highlights:

why the SEC lawsuit against Ripple has such historical significance in the crypto industry

how Judge Torres split the case into two categories

why the 'programmatic buyers' did not meet the four prongs of the Howey test

why the institutional sales constituted an investment contract

what makes the Ripple case different from the Kik and Telegram cases

whether the new ruling by Judge Torres will have an impact on how other crypto projects deal with their offerings

why, in the event of an appeal, Lewis expects a Second Circuit decision to take at least one year

whether Judge Torres' decision will impact the ongoing cases against crypto exchanges like Coinbase

why Lewis thinks the XRP order will not change the likelihood that spot bitcoin ETFs get approved

how there's no way to deal with information asymmetries in digital assets now

Thank you to our sponsors!

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Guest

Lewis Cohen, Cofounder DLx Law

Previous appearances on Unchained: The Lummis/Gillibrand Crypto Bill: Is the ‘Ancillary Token’ Approach the Best

Links

Previous coverage of Unchained on the Ripple case:

The SEC's Lawsuit Against Ripple and 2 Execs: What You Need to Know

Ripple's XRP: Why Its Chances of Success Are Low

CoinDesk: Ripple, Crypto Industry Score Partial Win in SEC Court Fight Over XRP

The Ineluctable Modality of Securities Law: Why Fungible Crypto Assets Are not Securities

Paradigm Files Amicus Brief in SEC’s Lawsuit Against Ripple

The Block: Lummis, Gillibrand to introduce revised comprehensive crypto bill

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By Laura Shin

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