Why SEC Claims XRP Is A Security? Attorney Explains
Recent motions filed for the Summary Judgement in the long running legal battle between US SEC and Ripple have brought relief to the XRP community. Experts are suggesting that the commission has failed to establish the XRP is a security.
Will SEC fail to prove its claim?
However, Attorney James Filan has interpreted the SEC’s arguments from the submitted motions. He states that the commission says that they aren’t saying that XRP is a security per se.
It claims that any purchase of XRP is an investment in a common enterprise that comprises Ripple and its other native token holders. The SEC asserts that whether it is happening via horizontal or vertical commonality, it is an investment in the common enterprise.
With this argument, the SEC suggests that while XRP may not be a Security per se. However, there is no other feasible way to sell or offer XRP except as a Security.
Filan mentioned that the SEC is trying to get judgment over the incorporated secondary sales.
Watchdog missing crucial things in motion
Meanwhile, John Deaton, Amicus Curiae in the XRP lawsuit highlighted what the SEC is missing in its crucial Summary Judgment. He said that the SEC is not relying on any expert comments. While it has also failed to attempt to prove the price correlation of the token.
There is no comment given by the SEC which reflects efforts done by Ripple to control its prices. However, there is no such testimony that can claim that XRP holders or investors were dependent on the efforts of the blockchain firm.
However, Filan reported that the attorney Bethan Rhian Jones filed an application to join Ripple’s defense team. He mentioned that Jones is with Kellogg Hansen. This will surely help the blockchain firm to strengthen its team keeping summary judgment in the sight.
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