Ripple (XRP) has seen a surge in popularity following its victory in a legal battle with the SEC. The payment-focused cryptocurrency saw a spike in social discussions following the landmark decision, according to social analysis firm LunarCrush.
XRP has outperformed other major cryptocurrencies in terms of social interactions, trailing only Bitcoin. The price surged by 80% on the day of the SEC ruling, but has since declined. However, XRP is still 50% higher than a month ago and is currently trading at $0.74.
While the XRP community celebrated, former SEC official John Reed Stark criticized the decision, saying it was shaky, likely to be appealed, and likely to be reversed.
Stark raised objections to the differentiation made between institutional and individual investors regarding the expansion of SEC protections and remedies. The decision mentioned that XRP is considered a security when sold to institutional investors but not to the general public.
Ripple’s former exec criticizes SEC decision
Secondly, Stark questioned the rationale behind excluding token sales through exchanges from securities laws. He found the assumption that individual buyers are ignorant and uninformed about the cryptocurrency issuer to be “not just condescending, but also downright insulting”.
Stark further objected to the idea that individual investors couldn’t understand Ripple’s intentions, pointing out that they have access to the same information as institutional investors. He stated that individual investors were well aware that XRP was backed by Ripple, and that’s why they invested in it. The SEC’s next steps are still undecided, and they are reviewing the regulatory decision, as reported by Bloomberg earlier.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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