The U.S. Securities and Exchange Commission has suggested that it may appeal a recent ruling on the Ripple Labs lawsuit, which deemed XRP to not be a security when sold to retail investors.
The SEC argues that the ruling goes against “fundamental securities laws principles” such as the Howey Test, which determines what falls under the category of an investment contract or not.
Do we really want a judge to ask herself: Does my strict application of the Howey test in this case result in an outcome in 2023 that comports with the policy implications behind a 1934 statute? https://t.co/acMNRc00B6
As per the SEC’s July 21 response to a motion to dismiss from Terraform Labs — in which the potentially precedent-setting Ripple Labs ruling was referenced by the defendants — the SEC highlighted a host of issues it holds against the court’s recent decision on XRP.
“Contrary to Defendants’ assertions, much of the Ripple ruling supports the SEC’s claims in this case and rejects arguments Defendants have raised here. However, with respect to the Programmatic and other sales, the SEC respectfully avers that Ripple conflicts with and adds baseless requirements to Howey and its progeny,” the SEC stated, adding that:
“Respectfully, those portions of Ripple were wrongly decided, and this Court should not follow them. SEC staff is considering the various available avenues for further review and intends to recommend that the SEC seek such review.”
The SEC’s statements come just a few days after SEC Chair Gary Gensler expressed his disappointment over the court deeming XRP to not be a security when sold to retail investors.
“We are pleased that the court addressed […] that a token for institutional investors is a security […] disappointed in the other aspect about retail investors. We are still taking a look at that and considering it,” Gensler stated in a July 17 interview with Yahoo Finance.
On the same day, Gensler also appeared at the National Press Club to give a talk on artificial intelligence, and was questioned if the court rulings represented an urgent need to establish clear regulation for the industry.
Gensler however, failed to provide a specific answer to such.
The SEC arguing that a court didn’t follow Howey is rich… On its own website, the SEC has acknowledged that Fed courts require commonality & then it goes on to say that it doesn’t require commonality in its analysis or view commonality as a distinct part of Howey. If the SEC’s… https://t.co/CX6Kwfh3cJ
The US government redesignated Garantex on Thursday to its list of sanctioned entities, along with its successor, Grinex, but TRM Labs suggests it may be ineffective.
Since last year’s general election, Sir Mel Stride has become a familiar face for those of us who like our politics.
During the campaign, he regularly found himself on breakfast TV and radio. So much so, Sir Mel was referred to as the “minister for the morning round” by some of our industry colleagues.
By our count, he was on Sky News Breakfast at least 10 times during the campaign’s 43 days.
Following the election, and losing the Conservative leadership race to Kemi Badenoch, Sir Mel now puts questions to Rachel Reeves as shadow chancellor.
Still seen as a safe pair of hands, Sir Mel’s penchant for doing the “morning round” hasn’t slowed down either, making regular appearances on breakfast TV and radio.
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Luckily, he found some time between all that to sit down for an interview with Sky’s Beth Rigby for the Electoral Dysfunction podcast. He spoke about his transition to Opposition, taking on Reform, and the most controversial topic in Westminster – lunch.
Here’s what we learned:
1. Opposition isn’t ‘awful’ – but it is like ‘warfare’
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‘I think people will see through Reform’s populism’
Before the election, Sir Mel served as work and pensions secretary. Shifting to the Opposition was not “awful”, despite losing the muscle of the civil service.
“But it is like guerrilla warfare,” he said.
“You suddenly lose all the trappings of government. Somebody once said to me, ‘when you get in the back of a car and you sit down and it doesn’t go anywhere, that’s when you realise you’re no longer a minister’.
“So it is that sort of sense of being looked after that disappears.”
There’s also a smaller team of Conservatives in the Commons. Before the election, Rishi Sunak had 343 MPs behind him.
Ms Badenoch currently only has 119.
“When you’re down to 120 MPs – and some set piece events, there might be only a fraction of those people there – it’s much quieter.
“What I actually often do is I can be quite provocative of the Opposition to get them going, because then at least you get something to feed off. Sometimes I do that to, just get the energy in the chamber.”
2. Being at the despatch box on big days can be ‘tricky’ – but he has a ‘secret’
You may remember Sir Mel’s lively response to Rachel Reeves’s spring statement in March. He revealed that, on those big political days, he isn’t told what the chancellor will say until about half an hour before it’s said in the Commons.
“It does give you and your team literally 10 or 15 minutes to… work out what the main things are,” he said.
However, he tells Electoral Dysfunction that you do have to be able to think on your feet in that scenario.
He said: “You are thinking about ‘what are the attack lines I’m going to use?’… and amend what you’re going to do.”
He added that he doesn’t get nervous. That might have to do with Sir Mel having been president of the Oxford Union debating society “many, many years ago”.
“Now the secret’s out. The secret is out Beth, and you’re the first to have gleaned that secret from me,” he said.
To be fair, it is on his website.
3. He’s not a huge fan of Reform
Image: Nigel Farage
As the Conservatives battle with Reform for the right, Sir Mel didn’t have many positive words for Nigel Farage’s party.
“With Reform… these are populists, who peddle fantasy economics,” he said.
“‘Take everybody out of income tax up to £20,000 costs about £80bn according to the IFS [Institute For Fiscal Studies].”
The IFS has said it needed “more detail” to exactly cost Reform’s proposal, but “it could easily be in the range of £50 to £80bn a year”.
“I think ultimately,” Sir Mel says, “people will see through a lot of the populism that Reform stands for.”
He added that he believed that Reform’s 2024 manifesto, was, economically, “a work of fiction”.
“I mean, it’s quite dangerous, actually. I think if they’d been elected… the economy would have gone into a very bad place,” he said.
4. His ideal lunch? A cheese and ham toastie
Image: Ms Badenoch and Sir Mel see eye-to-eye on many things – lunch isn’t one of them. Pic: PA
Sir Mel also addressed the most pressing issue of all – lunch.
If you’re unaware, this has proven a controversial subject in Westminster. Ms Badenoch told The Spectator in December she was “not a sandwich person… lunch is for wimps”.
In March, however, Ms Reeves gave a rebuttal to Electoral Dysfunction, revealing she whips up a cheddar sandwich in 11 Downing Street when she can.
Sir Mel falls more in line with his opposite number than his leader.
“I’ve always liked a sandwich, particularly a toasted sandwich,” he said.
“I’d go with the Cadillac, the Rolls Royce of sandwiches, a ham and cheese.”
Sir Mel has previously, however, been partial to some more peculiar fillings.
“Do you remember those Breville toastie makers? When I went to university, I had one of those, or whatever the equivalent was,” he said.
“You could put baked beans in, eggs in, and all sorts of things.
“It was fantastic.”
To each, their own.
Electoral Dysfunction unites political powerhouses Beth Rigby, Ruth Davidson, and Harriet Harman to cut through the spin, and explain to you what’s really going on in Westminster and beyond.
Want to leave a question for Beth, Ruth, and Harriet?