XRP Ecosystem Can Be At Risk After Ripple Summary Judgement Result
The US SEC vs Ripple lawsuit finally headed to a long time awaited conclusion after the parties filed their motion for Summary Judgment. However, filed documents suggest that the XRP ecosystem might come at risk by the end of this process.
New twist in the XRP case?
As per the two filed briefs, two completely different views of “common enterprise and “investment contract” has come out. However, claims over the “common enterprise” in the XRP case are in the focus right now.
Ripple has stated that common interest does not stand equal to a common enterprise. While SEC claims that fungible token creates a common enterprise as everyone holds a common interest in number going up.
Ripple mentioned that an ecosystem is not a common enterprise. However, the SEC directly states that the XRP ecosystem is a common enterprise.
Earlier, Coingape reported that Ripple General Counsel said that the SEC is Acting Outside Its Legal Limits.
Why the whole ecosystem is at risk?
John Deaton, Amicus Curiae in the XRP case in a tweet highlighted the same issue. He highlighted that Ripple was forced to concede that XRP holders have no legal or financial interest in the firm. He added that Ripple owes XRP holders nothing.
This has been the major reason why the SEC went on to claim that the XRP ecosystem is a common enterprise. Meanwhile, the ecosystem includes Ripple, every XRPholder, exchanges, developers and users having access to the XRPL.
Deaton added that the commission claims that it is not contending that XRP is a security. While it is argued that Rippe’s native token is the representation of Ripple’s effort. It also believes that the token represents the common enterprise.
However, now every no XRP holder will seek the danger in what this argument poses. If it gets a pass then it may apply to all securities laws in general with digital assets.
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