A former SEC attorney has expressed skepticism regarding the recent court ruling in favor of Ripple, stating that it is likely to be appealed and reversed. He suggests that if the ruling stands, it could lead to the emergence of a new type of token called programmatic buyer tokens (PBTs). The attorney raises concerns about the decision’s alignment with the SEC’s mission and the discrepancy in protection between institutional and retail investors. He questions the notion that securities regulations do not apply if tokens are sold through an exchange, arguing that investor ignorance has never been a valid defense for securities violations. The attorney also criticizes the presumption that purchasers may not know the issuer or seller of a token, stating that it should be assumed that purchasers have this information. He argues that even if a retail investor buys a token based on the concept of the “Greater Fool Theory”, it should still be considered a security. The attorney also highlights the inconsistency of tokens sold as securities suddenly transforming into “not securities” when sold on platforms like Coinbase or Binance. While the attorney expects the SEC to appeal the case, Ripple’s CEO believes that an appeal by the regulator may take some time.
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