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Fungible cryptos in secondary sales are not securities, Ripple tells SEC

Ripple, the blockchain company behind XRP, argued that fungible cryptocurrencies are not securities when transferred in secondary transactions in a recent letter sent to the US Securities and Exchange Commission (SEC).

In its May 27 letter, Ripple cited US attorney and crypto law thought leader Lewis Cohen to support its claim. In his widely cited 2022 paper, “The Ineluctable Modality of Securities Law: Why Fungible Crypto Assets Are Not Securities,” he wrote:

“[T]here is no current basis in the law relating to ‘investment contracts’ to classify most fungible crypto assets as ‘securities’ when transferred in secondary transactions.”

In his paper, Cohen explained that in secondary transactions, an investment contract transaction is generally not present. He further claimed that fungible cryptocurrencies “neither create nor represent the necessary cognizable legal relationship between” a legal entity and the holder that is the “hallmark of a security.”

Related: Banking groups ask SEC to drop cybersecurity incident disclosure rule

SEC’s “new paradigm”

Ripple also referenced SEC Commissioner Hester Peirce’s May 19 “new paradigm” speech. She said she’d been voicing her dissent with the regulator’s approach to crypto, adding:

“Having emerged from the crypto dissent years, I am glad to be able speak to you today as the head of the Commission’s Crypto Task Force about a rational and coherent path forward and a new paradigm at the SEC.”

Peirce said that the SEC’s “approach to crypto in recent years has evaded sound regulatory practice and must be corrected.” She also said that most cryptocurrencies are not securities, adding:

“Most currently existing crypto assets in the market are not [securities]. My supplemental answer is that economic realities matter and non-security crypto assets may be distributed as part of an investment contract, which is a type of security.”

Ripple’s long fight with the SEC

The SEC had viewed a large portion of digital assets as securities, with the regulator’s former chair, Gary Gensler, stating in 2023 that most of the crypto market falls under the securities bracket. This stance led to a protracted legal battle between the SEC and Ripple.

The lawsuit first began at the end of 2020, when the SEC took action against Ripple and its executives, claiming that XRP sales constituted unregistered security offerings. Still, after the government’s stance on crypto changed with the election of current US President Donald Trump, Ripple has mostly won the battle, with the SEC recently dropping its appeal against a ruling favorable to the company.

In its recent letter to the SEC, Ripple also cited a ruling in the case noting that “the court held that certain of Ripple’s historical institutional sales of XRP were investment contracts,” while the secondary sales were not. Furthermore, the judge “determined that XRP itself is not a security.”

Magazine: XRP win leaves Ripple and industry with no crypto legal precedent set

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Tube fare dodgers and Robert Jenrick clash at Stratford station – as he chases them at barriers for social media video

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Tube fare dodgers and Robert Jenrick clash at Stratford station - as he chases them at barriers for social media video

Robert Jenrick has taken the law into his own hands by challenging Tube fare dodgers in a social media video criticising London mayor Sadiq Khan.

The Conservative shadow justice secretary posted a video of himself challenging people walking through the barriers without paying at Stratford station in Newham, east London.

Newham is the third most deprived local authority area in the capital, according to the latest census data.

Politics latest: PM launches huge attack against Farage

However, Mr Jenrick said one in 25 people using London’s public transport are not paying for it, and accused Mr Khan of “driving a proud city into the ground”.

“Lawbreaking is out of control. He’s not acting. So, I did,” Mr Jenrick said in the caption.

Mr Jenrick could be seen approaching people slipping through the barriers and asking them if they think “it is alright not to pay”.

He was met with indignation, with one man telling him to “f*** off” and another saying: “I’m warning you now, move!”

Mr Jenrick asked one man if he said he was carrying a knife.

Sadiq Khan speaks to media at the launch of the Grassroots Music Tube Map at Outernet Arcade, London. Picture date: Tuesday May 13, 2025.
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Mr Jenrick said Sadiq Khan is failing to clamp down on fare dodgers. Pic: PA

The Conservative MP said there were eight enforcement officers nearby but people were going through an open barrier without paying.

At one point, he could be seen bringing one of the fare dodgers to a group of British Transport Police officers who took the man aside for questioning.

Mr Jenrick said it is “the same with bike theft, phone theft, tool theft, shoplifting, drugs in town centres, weird Turkish barber shops”.

“It’s all chipping away at society,” he said.

“The state needs to reassert itself and go after lawbreakers.”

Another Jenrick video to boost his profile


Rob Powell Political reporter

Rob Powell

Political correspondent

@robpowellnews

This is the latest video from Robert Jenrick that’s trying to tap into the well-documented frustrations many have in the country that low-level crime is eroding away at civil society.

Being tough on crime is not an unusual stance for any politician to adopt, but what’s a bit different about this approach is the shadow justice secretary is packaging up the message in a slick and provocative format that’s explicitly designed for social media.

It has the effect of appealing to supporters whilst also enraging critics, giving the end result of boosting its prominence online and boosting the profile of this ambitious frontbencher too.

Read more: Cummings predicts Kemi Badenoch will be gone by end of year

A British Transport Police spokesman said: “Ticket fraud is not a victimless crime – the cost is passed down to the honest fare-paying members of the travelling public.

“We are committed to working closely alongside the railway industry to tackle fare evasion and regularly support them with high visibility patrols at known hotspot locations.”

Fare evasion costs Transport for London (TfL) £130m a year, with YouGov finding 79% of passengers saying they have personally seen fare dodging.

In April, the mayor announced a new fare evasion strategy involving expanding TfL’s team of more than 500 uniformed officers already deployed across the network to deal with fare evasion and other anti-social behaviour.

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Starmer says government ‘will look at’ scrapping two-child benefits limit

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Starmer says government 'will look at' scrapping two-child benefits limit

Sir Keir Starmer has said his government “will look at” scrapping the two-child benefits limit.

In his strongest hint yet that he will perform a U-turn – when asked if he would scrap the two-child benefit cap, Sir Keir said: “We’ll look at all options of driving down child poverty.”

The cap means families can only claim child tax credit and universal credit for their first two children, if they were born after April 2017.

It was introduced in 2017 by the Conservative government, and in 2023, Sir Keir ruled out scrapping it.

However, as Labour came to power last year, he said the party wanted to remove the cap but only when fiscal conditions allowed.

But he then doubled down on refusing to lift it, suspending seven Labour MPs shortly after the election victory for voting with the SNP to remove the cap.

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Winter fuel payment cuts to be reversed

Ministers had toed the party line for months, but the narrative started to shift in May, with Education Secretary Bridget Phillipson telling Sky News on Tuesday lifting the cap is “not off the table” – and “it’s certainly something that we’re considering”.

Sir Keir was also reported to have asked the Treasury to see how scrapping it could be funded.

His words on Thursday are his strongest indication yet, that he could lift the cap soon.

Read more:
What is the two-child benefit cap and will Labour scrap it?
Starmer confirms U-turn of unpopular winter fuel policy

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Winter fuel payment cuts to be reversed

It would mean a second benefits U-turn after he made a shock announcement last week that he was going to relax the winter fuel payment cut.

The policy, announced soon after Labour won the election, has caused anger among Sir Keir’s own MPs as it restricted the previously universal payment to those who receive pension credit.

It will now be available to “more pensioners”, but details of who and when have not been revealed.

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Kazakhstan to pilot ‘CryptoCity’ for crypto payments and adoption

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Kazakhstan to pilot ‘CryptoCity’ for crypto payments and adoption

Kazakhstan to pilot ‘CryptoCity’ for crypto payments and adoption

Kazakhstan’s president announced plans to build a “CryptoCity” pilot zone where crypto can be used for payments, aiming to establish a regulatory sandbox for digital assets.

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