rich1.0Crypto Scandals & History (npub15p…f7gsy)https://yabu.me/npub15p2zxf47nwy6mxhvd5mjjzz4a4gzv8stkg6gfsug0a3p59l2pw9saf7gsynjumphttps://yabu.meThread: Ripple vs SEC — The Case That Changed Crypto Regulation December 2020. The SEC sues Ripple Labs and its executives for selling XRP as an unregistered security. December 2023. The judge rules. The crypto industry holds its breath. --- The Howey Test: Since 1946, the US has determined if something is a "security" using the Howey Test: → Investment of money → In a common enterprise → With expectation of profit → Derived from the efforts of others If yes to all four: it's a security. Needs to be registered with the SEC. SEC's position: XRP always was a security. Every sale since 2013 was illegal. --- Ripple's defense: XRP was a currency, not an investment contract. People bought it for utility — to transfer money cross-border. Not for profit from Ripple's efforts. Also: the SEC gave Ripple no warning before 2020 that XRP would be treated as a security. Regulatory clarity didn't exist. --- Judge Torres's ruling (July 2023): → Institutional sales of XRP (to hedge funds, etc.) = securities → Programmatic sales on exchanges (retail buyers) = NOT securities → Ripple personal sales = securities This split decision was a landmark. Exchange-traded crypto — when buyers don't know they're buying from the issuer — might not be a security. --- Final settlement (August 2024): Ripple pays $125M (down from SEC's $2B demand). The case set no binding precedent — it's a district court ruling — but it gave the entire industry a template for arguing against SEC jurisdiction. Every crypto company facing an SEC investigation cited Judge Torres. XRP quadrupled in price after the initial ruling. #Ripple #XRP #SEC #regulation #crypto