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Three Critical Questions That Will (Hopefully) be Answered by the SEC’s Lawsuit against Ripple

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Here is an article from the National Law Review. In summary: 

1. When does a digital asset transition from a security to a currency (or something else)? Because if ICOs are securities, but ETH is not, then where is the line? 

2. How will President Biden’s administration approach digital assets? 

3. How should disgorgement be calculated for a violation of Section 5 (and only Section 5) after the Supreme Court’s decision last year in Liu?  


The last one is particularly interesting because "the Supreme Court explained that courts should deduct “legitimate expenses” when calculating disgorgement. The Ripple case could provide the SEC or the court the opportunity to explain how to calculate legitimate expenses, particularly in this case, where there are no allegations that the company or executives engaged in fraud and it looks like the company will be able show substantial expenses from operating its business and the executives will be able to show that they provided legitimate employment services to Ripple" 

Edited by RobertHarpool
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