- SEC charges Stoner Cats 2 LLC for unregistered NFT sales; company settles without admission of guilt.
- Ripple CLO Stuart Alderoty underscores the SEC’s track record of losing cases when rigorously opposed in court.
SEC’s Crypto Conundrums: Ripple CLO Speaks Out
As the cryptocurrency industry burgeons, it often finds itself at loggerheads with regulatory bodies. One such entity, the U.S. Securities and Exchange Commission (SEC), recently targeted Stoner Cats 2 LLC (SC2), charging them with executing an unregistered crypto-asset securities offering via non-fungible tokens (NFTs).
In a revelation, the SEC pinpointed SC2’s July 2021 endeavor, wherein they amassed $8.2M from the sale of 10,320 NFTs, each priced around $800. SC2, without conceding or negating the accusations, opted for a settlement. Part of this agreement entails adhering to a cease-and-desist command, annihilating any remaining NFTs, and remitting a $1 million civil fine.
The Ripple Perspective
Stuart Alderoty, Ripple‘s Chief Legal Officer, couldn’t resist sharing his two cents on this development. With a hint of sarcasm, he intimated that some might see the SEC’s latest announcement as mere optics, a PR exercise. Alderoty’s central contention revolves around settling with the SEC – doing so without admitting guilt seems less about justice and more about side-stepping the regulator’s formidable legal process. More boldly, he professed his belief that when the SEC’s arguments face serious legal scrutiny, they tend to falter.
This sentiment isn’t unique to Alderoty. James K. Filan, a notable crypto advocate and attorney, echoed Alderoty’s perspective. Continually, Alderoty and his ilk have decried the SEC’s nebulous crypto regulations, urging for transparency and clarity. Their gripe? The SEC, they argue, leans more toward enforcement-driven regulation than law-backed clarity.
Past SEC Skirmishes: Ripple and Grayscale’s Triumphs
The crypto-verse has seen a mixed bag of reactions when confronted by the SEC. While entities like Kraken chose settlements over long-drawn legal duels, a brave few – Ripple, LBRY, and Grayscale among them – decided to meet the SEC head-on in court.
>> Buy XRP quickly and securely with PayPal, credit card or bank transfer at eToro with low fees and deposit protection. Get started with XRP now. Visit Website <<
Their outcomes varied. LBRY faced defeat, but Ripple and Grayscale emerged with favorable judgments. Grayscale, in a recent lawsuit, compelled the SEC to reconsider its initial denial of the company’s bid to metamorphose its Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF.
Concurrently, Ripple tasted partial success against the SEC. A judicial verdict decreed that Ripple’s XRP sales and associated distributions didn’t infringe securities regulations. Yet, it was determined that Ripple’s direct XRP sales to institutional entities qualified as investment contracts.
Now, the SEC aims to contest this judgment concerning Ripple‘s XRP transactions. With motions filed, the crypto community is on tenterhooks, awaiting the court’s next move.
Best Crypto Exchange for Everyone:
- Invest in Ripple (XRP) and 70+ cryptocurrencies and 3,000 other assets.
- 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
- Copy top-performing traders in real time, automatically.
- Regulated by financial authorities including FAC and FINRA.
2.8 Million Users
