Ripple CTO Emeritus David Schwartz has publicly challenged a former SEC attorney's interpretation of the Ripple case, arguing that the agency effectively treated XRP as a security even after acknowledging the token was not inherently one. The exchange of views highlights the ongoing debate over how the SEC's enforcement actions align with its own stated principles.
What Schwartz said
In a recent statement, Schwartz took issue with the former official's reading of the case. He argued that the SEC's actions contradicted its own acknowledgment that XRP is not inherently a security. The distinction matters because it goes to the heart of how the SEC applies the Howey test to digital assets.
The former official's position
The disagreement is with former SEC official Marc, whose interpretation Schwartz challenged. The specifics of Marc's argument were not detailed, but the back-and-forth underscores the lack of consensus even among legal experts on the implications of the Ripple ruling.
Broader implications
The Ripple case has been a landmark for crypto regulation. While the SEC has said XRP itself is not a security, its treatment of the token in the enforcement action has left many in the industry confused. Schwartz's comments add to the chorus of voices calling for clearer rules.
For now, the debate remains unresolved. The SEC has not issued new guidance on XRP since the case, and the industry continues to operate under a patchwork of interpretations.
