John Reed Stark disagreed with a court ruling that ruled that the XRP cryptocurrency is not considered a security when traded on exchanges for retail users. And, according to the same verdict, selling XRP to entities violates securities laws.
Stark believes the court’s ruling is based on “shaky ground,” so it will be successfully appealed by SEC officials. It turns out financial companies can count on remedies, while individual users are left without safeguards, and that’s unfair, Stark resents.
If an issuer sells its crypto assets through an exchange, the securities laws don’t apply because it’s assumed that the exchange’s customers may not know about the issuer. The key question should be: can investors expect to profit from the efforts of a third party, independent of the intermediary? Buyers of cryptoassets often make investments for the sake of speculation, expecting that someone else will be willing to pay more