Former SEC official claims XRP-like crypto tokens can be security

John Reed Stark claimed that Ripple (XRP) lovers should be careful that the latest court ruling in favor of Ripple in the XRP lawsuit is not the final judgment and also not applicable on similiar kind of crypto assets.

Ripple is a San Francisco headquartered blockchain firm. This firm provides cross-border payment services globally at a low cost over traditional cross-border payment services. In Dec 2020, the United States Securities Exchange Commission (SEC) sued Ripple firm with several charges. Through the charges, the SEC body claimed that XRP was a security token but in the latest court ruling the court judge declared XRP as a non-security crypto token. 

Following the court ruling in the XRP lawsuit, the former SEC official John Reed Stark shared his opinion via the popular businesses & employment social platform LinkedIn. Through LinkedIn handle, the former SEC official said that the latest court ruling is not the final judgment over the nature of XRP coin & other similar crypto assets. 

According to Stark, the SEC agency may again appeal against the latest court decision, to conduct more court proceedings to prove the unregistered crypto security nature of XRP coin and that may reverse the latest court ruling.

Furthermore, the former SEC official also explained people that the court’s Ripple Decision holds that other XRP-like crypto tokens may be security crypto tokens and/or non-security in certain circumstances. 

Indirectly the former government official stated that Ripple vs SEC resolution is not going to bring any clarity for other crypto assets. 

A few crypto Twitter users said that the SEC is not gonna to appeal, but instead will settle the case. 

In a recent interview with the Bloomberg media, Ripple CEO Brad Garlinghouse said that he believes that it will take years for the SEC body to appeal against the latest court ruling.

Read also: SEC require a long time process to get a chance to appeal against Ripple