Ulio.r

The most common misstatements on the Ripple / XRP ruling corrected, with citations and source references: "The SEC has won most of the case. This ruling is a major blow for Ripple and XRP Holders." This is false. The SEC only prevailed on one single aspect - Ripple's early institutional sales of XRP. Meanwhile Ripple prevailed in all other sales categories. This can be considered a major win for Ripple and XRP holders. - "XRP, as a digital token, is not in and of itself a “contract, transaction[,] or scheme” that embodies the Howey requirements of an investment contract." (Page 15) -"Ripple’s Programmatic Sales of XRP did not constitute the offer and sale of investment contracts." (Page 25) - "Ripple’s Other Distributions did not constitute the offer and sale of investment contracts." (Page 27) -"Larsen’s and Garlinghouse’s offer and sale of XRP on digital asset exchanges did not amount to offers and sales of investment contracts." (Page 27) "The court says that XRP is a security that can't be traded freely on exchanges." The court made the determination that XRP in itself is not a security, while not ruling on transactions that were not before the court, she declared Ripples sales of XRP on exchanges not to be securities sales, which indicates that blind selling / buying on secondary markets are not to be considered securities offerings too. -"Programmatic Buyers could not reasonably expect the same. Indeed, Ripple’s Programmatic Sales were blind bid/ask transactions, and Programmatic Buyers could not have known if their payments of money went to Ripple, or any other seller of XRP." (Page 22) - "Having considered the economic reality of the Programmatic Sales, the Court concludes that the undisputed record does not establish the third Howey prong." (Page 23) - "XRP, as a digital token, is not in and of itself a “contract, transaction[,] or scheme” that embodies the Howey requirements of an investment contract." (Page 15) "The court prohibits Ripple from selling any more XRP to fund their business." The ruling does not prohibit Ripple from selling XRP. It only found one category of sales (institutional) to be improper. Ripple can continue to sell XRP through other means like programmatic sales. - "Having considered the economic reality of the Programmatic Sales, the Court concludes that the undisputed record does not establish the third Howey prong." (Page 23) - "Ripple’s Other Distributions did not constitute the offer and sale of investment contracts." (Page 27) -"Larsen’s and Garlinghouse’s offer and sale of XRP on digital asset exchanges did not amount to offers and sales of investment contracts." (Page 27)