You Won’t Believe What the SEC Just Said About XRP Trading Rights!

Ah, more than five years have waltzed by since the Ripple lawsuit made its grand debut, and still, it captivates the audience like a tragicomedy. Yes, the Securities and Exchange Commission, ever the drama queen, decided to sue Ripple Labs in December 2020, claiming they were engaging in some nefarious escapade by selling XRP without the sacred registration as a security. What a scandal!

Then came July 2023, when Judge Torres, in a twist worthy of a Shakespearean play, declared that XRP, the much-maligned token, was not a security in its own right. This ruling was hailed as a resounding victory for the industry-one might even say it was the stuff of legends! In her wisdom, she also pointed out that there were no accusations of fraud, effectively tossing the SEC’s hopes of forcing Ripple to relinquish its profits into the abyss.

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Fast forward to 2025, and the saga took another turn with Ripple forking over a mere $125 million penalty-a pittance compared to the SEC’s lavish demand of nearly $2 billion. Oh, the irony! It seems justice can occasionally wear a jester’s hat.

Retail XRP Trading Rights Were Never Restricted

In the year 2026, like clockwork, the SEC released its long-awaited guidance, a veritable treasure map delineating which digital assets it considers securities. Picture it: former SEC official Marc Fagel, the modern-day oracle, responded to a curious inquiry about why the illustrious former SEC Chair Gary Gensler never sought to champion the retail investors’ cause in the Ripple affair. “Why did he not fight for Ripple equity for XRP holders?” asked a bemused X user.

There is no legal mechanism for the SEC to order a company to issue equity. Retail XRP never had any limitations on their legal rights to trade XRP.

– Marc Fagel (@Marc_Fagel) March 18, 2026

Ah, the plot thickens! Fagel, with a wink and a nod, pointed out that the SEC lacks the magical power to compel a company to issue equity. “Retail XRP never had any limitations on their legal rights to trade XRP,” he quipped, as if delivering the punchline to a great cosmic joke.

Crypto Guidance is Good

In this new guidance, the SEC has finally conceded that most crypto assets are not securities-a revelation that might make one wonder if someone had finally turned on the lights in the darkened chamber of regulatory oversight. The crypto industry has long clamored for clarity, akin to a child seeking answers about the nature of Santa Claus.

Fagel, ever the realist, remarked that while the guidance is a step in the right direction, it may not hold water legally: “Which isn’t to say I have a position on the new guidance; it’s good for the SEC to issue guidance (though it’s far more crucial for Congress to act; laws mean a lot more than reversible guidance without force of law). But the guidance isn’t necessarily the ‘right’ answer legally.” Ah, the eternal struggle between legislative intent and bureaucratic whimsy!

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2026-03-19 15:50