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…
Also Read: G20 Nations To Discuss Crypto Regulations Under India’s G20 Presidency
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.
Also Read: Bitcoin (BTC) Price Hit $30,000 Exactly After 10 Months
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 He suggested that the Howey Test isn’t outdated but it needs to be upgraded.
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role
- Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms
- Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
