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XRP Lawsuit News: The long awaited Summary Judgment in the legal tussle between U.S. Securities and Exchange Commission (SEC) and Ripple is expected to provide clarity around “Security” categorization. However, Ripple Lawsuit moves toward a conclusion, XRP holders are raising concerns about XRP’s nature during different stages of sales.
Also Read: Cardano Founder Worked As Ripple Intern? Hoskinson Reveals
Did XRP Pass The Howey Test Here?
An XRP holder mentioned that he invested in XRP because he knew about Ripple. One of the major reasons for getting into XRP in 2016 was Ripple’s CTO, David Schwart working for the NSA. He added that his first buy came in after reading a new article that hinted that bank might use it ahead. The holder highlighted that he bought XRP when it was priced at $0.10.
XRP holders’ lawyer, John Deaton issued clarity over the matter. The attorney stated that Ripple Labs had any kind of direct contact with the buyer and sold him XRP, then there is a valid argument where Ripple’s native crypto satisfies prongs of the Howey test. Read More XRP News Here…
As per the given scenario, the buyer paid money to Ripple in favor of XRP. This deal makes the buyer enter a common enterprise with Ripple and directs that a profit was expected based on David Schwart’s talent.
Also Read: Ripple Legal Chief Has A Tip For “Bears” On Crypto Rules
Attorney Inspects Different Scenario
It should be noted that if the buyer didn’t buy XRP from Ripple without having a contract with the blockchain firm in the secondary market. Then it makes a different situation altogether. However, if the XRP was bought for non-investment criteria like making a transaction on the ledger to transfer money then it is a completely dissimilar scenario.
The attorney claimed that even if Ripple sold an investment contract using XRP as the underlying digital asset, it still doesn’t make the token a security.
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