Ripple’s top lawyer on SEC battle

[HAL1000]

"The regulatory morass is resulting in bizarre outcomes," says Ripple General Counsel Stuart Alderoty.

https://www.protocol.com/fintech/ripple-cryptocurrency-xrp-sec-bitcoin

The link is to an interview with Stuart Alderoty who spent nearly two decades working for old, traditional banks doing work that he described as "a little soul-crushing." 

If you can get through the pop-ups and ads, it's worth a read, he says they are fighting for the whole crypto industry.

[Julian_Williams]

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The timeline of that is somewhat important. Prior to Ripple being founded, the XRP ledger was created, and 100 billion units of XRP were created on the ledger. No more will ever be created. Then Ripple was founded, and a portion of that 100 billion was gifted to Ripple. I don't think that's relevant to the security analysis whatsoever. The security analysis, it's the sort of esoteric test from a 1946 Supreme Court case called the Howey case. It doesn't matter whether the asset is to be created or is created. What matters is: Is the asset sold as part of an investment contract?

Interesting because I have always thought the teh fact Ripple never issued an ICO was a part of their defence.

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So what I think needs to happen is we need to have a cross-functional working group among the key regulators, which is probably the SEC, the CFTC, the Department of Justice, FinCEN, Treasury and the industry to sit down through a formal rule-making process or a legislative process to see if we can get to a rational framework that balances regulation with innovation. So you don't have regulation that crushes innovation. There needs to be a balance.

We're not asking to be free of regulation. What we want is rational regulation that we can understand.