Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has recently submitted a letter to the U.S. Securities and Exchange Commission (SEC) demanding clarity and differentiation between crypto tokens and investment contracts. While addressing SEC’s Crypto Task Force, headed by Commissioner Hester Peirce, Alderoty argued that most fungible crypto assets won’t qualify as securities under the existing laws. Ripple CLO Demands Crypto Regulatory Clarity In his SEC letter, Alderoty cited the ‘The Ineluctable Modality of Securities Law’ paper by Lewis Cohen, stating that an investment contract requires a legal relationship between a buyer and a seller. However, this is not necessary in the secondary market transactions of the crypto market, he said. In the ongoing SEC vs Ripple lawsuit, the Ripple CLO also pointed out the ruling by Judge Torres where XRP was deemed not a security in secondary sales, although the earlier institutional sales met the criteria for investment contracts. While… Read More at Coingape.com
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