Crypto enthusiast James Murphy, known as MetaLawMan, recently provided insights into the ongoing SEC appeal in the Ripple case. His engaging comparison of oranges and XRP during a CryptoLaw interview has caught the attention of the XRP community. Murphy’s analogy sparked discussions about the legal classification of XRP under the Howey Test.
According to attorney Bill Morgan, who represents Ripple, MetaLawMan uses a metaphorical explanation on X that Morgan notes demonstrates the inefficiency of the Howey Test for dealing with the intricate matters of security on cryptocurrencies. This discussion came up courtesy of MetaLawMan when he emphasized the need for Ripple to appeal the SEC’s most recent actions. Most significantly, he received satisfaction from the interview with attorney Kristi Warner, where he compared transactions in XRP to the sale of oranges.
It refers to Howey selling oranges to wholesalers at one price only for the middleman to sell them at an improved price. In this case, Howey uses the capital to finance its farming business. Also, similar to Ripple’s situation, the wholesalers do not disclose an indication of their sales or share any profit with Ripple. Ripple offered XRP to institutions at a lower offer price who in turn, supply XRP on the market with no offer to pay profits back to Ripple, the company behind the cryptocurrency.
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Legal Landscape Shifts with Ripple’s Appeal
However, the SEC has lately filed an appeal to override Judge Analisa Torres’ decision, through which Ripple had a legal victory. Lawyers do, however, expect the fight to be a long intellectual one. However, there is hope of reaching a consensus within the next two weeks as the Ripple cross-appeal deadline approaches.
MetaLawMan highlighted two main aspects that Ripple’s appeal will likely target. First, the legal status of XRP in secondary market sales. In his decision, Judge Torres stated that any subsequent resales of XRP are not securities transactions – this is a direct defiance of the SEC. Secondly, the SEC has not identified specific victims, weakening its argument about the disgorgement order.
The developments surrounding the Ripple case continue to generate significant interest among investors and legal experts alike. The ongoing discussions reflect the evolving nature of cryptocurrency regulations and their implications for market participants.
Also Read: Ripple USD (RLUSD) Approaches Launch as Community Questions XRP’s Future Role
