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Ripple token is a not security when sold to the general public

8 points by rlalwani ↗ HN
A federal judge ruled that the Ripple Labs Inc. token is a security when sold to institutional investors but not the general public, granting a partial win to the SEC in a long-awaited decision that could help determine the future of crypto regulation.

7 comments

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rlalwani
XRP is up. $0.60158 at the moment.
TechBro8615
People have been murmuring about Ripple being the gov-insider coin for a long time. Truth to the rumors?
trompetenaccoun
Which government?

It's more like a corporate and big bank coin/scam I'd say. Some of those who're invested: Google, a16z, Banco Santander, Standard Chartered

nivertech
So, it moves the responsibility from Ripple Labs Inc to the institutional investors who bought the token from them and acted as underwriters to general public?

Since institutional investors are by definition acredited, so it was OK for Ripple Labs Inc to sell securities to them.

Also, the court decision completely ignores the fact that so called "exchanges" are by themselves are illegal (or unregulated in the best case), and act as Broker/Dealers.

Since these platforms are unregulated, it's impossible to know how their orderbooks operated, and what was the amount of the wash trading there.

The same logic applies to almost any financial contract or security trading on the real exchanges (except IPOs).