David Schwartz, CTO of Ripple Labs, has questioned former SEC official John Reed Stark about why art from an emerging artist is not classified as a security under the SEC's interpretation of an investment contract. Schwartz compares the situation to crypto investments, where money is invested and buyers anticipate making profits from future works. This comes in response to Stark's celebration of the SEC's legal victories against crypto firms, particularly the court ruling against Terraform Labs. The court ruled that four of Terraform's crypto assets were investment contracts, but Terraform disagreed and asked the court to scrap the investment contract definition. In the case against Ripple, the SEC argued that XRP was an investment contract, but a judge ruled that it did not meet the requirements. The SEC has filed an appeal, and the court of appeals has instructed the SEC to file its last arguments by January 15.



Other News from Today