Jeremy Hogan, a notable attorney with a penchant for supporting XRP, recently made waves on social media platforms. He championed the idea that specific authorized sales of digital currencies, such as XRP and SOL, need not necessarily be registered with the SEC even though the agency famously considers them securities.
Unpacking Everything: FTX’s Standing
Marc Fagel, a luminary in securities law and a former SEC official, got into the matter’s complexities. According to him, FTX, in its role as a facilitator rather than the originator of these tokens, may very well be exempt from the obligatory SEC registration. However, he hinted at a potential maze of legal conundrums should FTX ever decide to sell its native tokens.
The Token Debate
The discourse didn’t end there. An analyst known as The Digital Dodo posed an intriguing question, pondering whether a token identified as a security should undergo mandatory registration. In a nutshell, the essence of his question was about the traceability of a token’s origin – whether it was from an exempt sale or the initial issuer. The perception that cryptocurrencies are beloved by those on the wrong side of the law for their untraceability added another layer to the debate.
Fagel responded with an elucidation. He emphasized that subsequent sales, much like the initial one, would likely be exempt too. The real head-scratcher, according to Marc, would be determining whether a particular token requires an exchange to be registered, something that might be illuminated by forthcoming decisions in cases like Coinbase and Binance.