Former SEC lawyer is concerned about the abolition of the Ripple case: the Ripple decision in danger?

Former SEC lawyer is concerned about the abolition of the Ripple case: the Ripple decision in danger?

former SEC lawyer expressed concern about the abolition of the Ripple Falls

The former lawyer of the US stock exchange supervision SEC (United States Securities Exchanges Commission, Sec), John Reed Stark, has expressed his concern about the latest Ripple decision and warned against premature celebrating the crypto community. In the long case, the blockchain company won a partial victory after the court said that XRP was not a securities.

Reed's belief in a possible calling and cancellation

While the decision was widely regarded as a loss for the SEC, Reed believes that the decision is on shaky legs and that it is probably appealed and possibly reversed, he said in a contribution dated July 14. "But in my modest opinion, the decision is likely to be on shaky legs.

New token development and troubling problems

Without such a reversal, he predicts the creation of a new token: type of token, Programmatic Buyer tokens (PBTS). Reed argued that the decision on several fronts raises worrying questions and seems to be contrary to the mission and authority of the Sec. First, he criticized the discrepancy in the second protection between institutional and private investors.

No equal treatment for private investors

The lawyer found that institutional investors are granted comprehensive second protection and legal remedies for violations, but private investors are excluded from this. This unequal treatment gives rise to considering the agreement of the decision with the mission of the SEC to protect all investors. "In addition, I think the idea that small investors are so ignorant.

Questions about assumptions and the identity of the counterparty were raised

He also asked questions about the acceptance of the Ripple Court that buyers may not know who the issuer is or who sells the token. In addition, the lack of a contract between the buyer and the seller of a share on a stock exchange does not destroy the identification of the share as security. According to Reed, the central question should be whether investors can expect profits from the efforts of third parties, regardless of the identity of the counterparty. Reed pointed out that token buyers often make speculative investments because they assume that someone else will be willing to pay more for the token-a concept known as the "Greater Fool Theory". Even if a small investor buys a token exclusively on the basis of this theory and does not know the exact counterparty, the investment should still be considered security, argues.

Transformation of tokens and the opinion of the Ripple team