A former executive at the US Securities and Exchange Commission (SEC), John Reed Stark, has criticized a court’s decision that XRP is not an investment contract. He argues that the decision only grants full SEC protection to institutional investors, while retail investors are neglected. Stark also expresses concerns about the implications of the court’s decision on securities regulations, highlighting that investor ignorance is not a viable defense for securities violations. He challenges the notion that retail investors are inherently ignorant and suggests they made investment decisions based on the same information available to institutional investors. Stark believes retail investors likely invested in XRP because they believed in its potential price increase due to Ripple’s efforts and encouragement.
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