Svmuu News: David Schwartz, Ripple’s CTO Emeritus, stated that although the SEC acknowledges that XRP itself is not inherently a security, its legal theory still treats XRP as a security on the grounds that holders expect to profit from Ripple’s efforts. Marc Fagel, former regional director of the SEC’s San Francisco office, noted that the case targets Ripple’s sales of XRP, not the XRP token itself. He believes the SEC is merely alleging that Ripple sold XRP as a security.
Schwartz countered that the SEC’s arguments regarding programmatic exchange sales cannot be explained solely by the claim that “Ripple sold XRP as a security,” since buyers typically do not know the identity of the seller and may not have been exposed to Ripple’s representations. The court ultimately distinguished between different types of transactions, ruling that certain institutional sales constituted investment contracts, while Ripple’s programmatic exchange sales did not. Schwartz believes this indicates that the court narrowed the SEC’s broader theory. (News.bitcoin)