Summary of Ripple Crypto Lawyer’s Response to Criticism of SEC Case
- An XRP enthusiast shared a screenshot from Ripple’s Q4 2022 report that revealed the company sold XRP only in connection with ODL transactions.
- The SEC has decided not to enjoin the present XRP sale, as there is no expectation of profit for its use in ODL transactions.
- The SEC increased its regulatory control of the cryptocurrency sector over the past week, prompting criticism from some industry participants.
Ripple Enthusiast Shares Screenshot on XRP Sale
An XRP enthusiast named Bill Morgan shared a screenshot from Ripple’s Q4 2022 report indicating that the company sold XRP only in connection with ODL transactions. The SEC has decided not to enjoin the present XRP sale, he continued, adding that this has been going on since 2019. Taking to Twitter, he wrote, „My theory John is when Ripple was being investigated in 2019 and told to stop selling XRP they decided to limit sales to ODL users knowing such sales don’t fit Howey. Basically not any prong. Why otherwise limit sales to ODL transactions and use.“
SEC Decides Not To Enjoin Present Sale Of XRP
Because there is no expectation of profit in the current selling of XRP, it is not a security if it is solely being used for ODL transactions and not as an investment. The San Francisco-based Ripple Labs was charged by the SEC in December 2020 with marketing unregistered securities in the form of XRP without providing sufficient notice. Using the example of Stacks (STX), another cryptocurrency project which dropped its token registration with the SEC after filing an exit report, Jay’V suggested other projects should follow suit.
Hiro Drops Registration With The SEC For Stacks Token (STX)
In 2021 Hiro (formerly Blockstack PBC) filed a 2020 annual report with the SEC stating that Stacks token (STX) was no longer secure and will stop filing yearly reports with the SEC as a result. Muneeb tweeted „This concludes a two-year journey; we anticipate filing an exit report.“