Ripple Win Against US SEC Might Upgrade Howey Test For Crypto
XRP Lawsuit News: The United States Southern District Court of New York will soon be announcing a much anticipated Summary Judgment in the long running Securities and Exchange Commission (SEC) Vs Ripple case. A ruling in the XRP lawsuit will change many aspects of the crypto industry. However, it is anticipated that a verdict might also upgrade some traditional analysis tools used by authorities.
Can US SEC Secure Win In XRP Lawsuit?
Ripple and its executives are facing the US SEC which recently won several legal battles against crypto related firms. Attorney Jeremy Hogan highlighted that the commission had early success in the crypto cases as those companies did not raise the “post-loss obligation” issue.
Attorney stated that Ripple raised an argument that there must be a “contract” to have an “investment contract”. However, the SEC fielded a number of cases where to one degree or another, there was no formal written agreement. While the agreement here lands in that Howey covers almost any investment purchase. Read More XRP News Here…
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The US SEC in the XRP lawsuit argues that prongs 2, 3 and 4 taken together replace the need for the elements of a legal contract. It suggests that the Howey test doesn’t require a formal contract because the “common enterprise” and “expectation of profits” fit in the contract analysis.
According to Hogan, the commission won the rest of the cases just because stating the purchase of the crypto from a traditional standpoint. These transactions look like a type of investment/purchase that Howey is supposed to capture.
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Keeping traditional purchases from centralized sellers in comparison to decentralized makes the way for Ripple here. He added that this is the issue that can save the digital assets in the U.S. A Ripple win on a Howey analysis will prove a nig setback for the SEC. He suggested that the Howey Test isn’t outdated but it needs to be upgraded.
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