Can US SEC Win Against Ripple With Howey Test?
XRP News: The long running legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple executives over the nature of the world’s 6th largest crypto, XRP is yet to see the court decision. The attorney representing XRP holders in the lawsuit hits out at the commission over its legal outreach.
Also Read: Is Settlement Still In Scenario As Summary Judgment Closes In?
US SEC Fighting With Wrong Claims?
In a recent Op-ed published on Bloomberg law, Attorney John Deaton slammed U.S SEC Chair, Gary Gensler over his approach toward crypto with the Howey Test. He mentioned that back in 1946, the U.S. Supreme Court issued a vital decision in SEC Vs Howey. The court laid out a specific definition of what constitutes a security.
The justices at that time wouldn’t have guessed how complex digital commerce be ahead, he added. Meanwhile, the SEC Chair holds his own idea of how cryptocurrency should be regulated today and it is taking it into a dangerous corner in the court. Read More XRP News Here…
As per the Howey Test, a transaction is a security if it is an investment of money, in a common enterprise, with a reasonable expectation of profit derived from the efforts of others.
In order to prove an investment contract a security, all three prongs of Howey must be satisfied. Earlier, Coingape reported that Ripple’s win against US SEC might upgrade Howey Test for Crypto.
XRP holders’ lawyer highlighted that the SEC for a long two years in the Ripple lawsuit is not arguing this. The commission is claiming that all sales of XRP have been and will be security ahead. The commission stretches to claim that the very nature of the digital asset is to be a security.
Also Read: Ripple’s New Prediction On End Date Of SEC Lawsuit
Deaton added that clear rules and regulations are to protect people. However, the SEC here is exploiting legal uncertainty about crypto. Gary Gensler is moving radically to redefine what constitutes an investment contract and a common enterprise.
- ‘Great Progress’: Cardano Founder Shares Update After CLARITY Act Roundtable
- Jerome Powell Signals No Rush to Cut Rates, Bitcoin Falls
- FOMC Meeting: Fed Makes First Rate Cut of the Year, Lowers Rates by 25 Bps
- “Beyond a Centralized Exchange” Bitget CEO Unpacks Universal Exchange Vision on 7-Year Anniversary
- Breaking: CME Group to Launch Solana and XRP Futures Options as Institutional Demand Grows
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
- Pepe Coin Price Prediction as Whale Moves $25M From Robinhood- Is a Breakout to $0.00002 Next?
- XRP Price Prediction as Market Longs Hit 78% amid VivoPower Treasury Expansion Launch — Is $4 Next?
- SHIB Price Forecast: Taker Buys Lead as Developers Counter Shibarium Exploit
- Solana Price Set for a 25% Jump as Open Interest Nears a $20 Billion Milestone
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.
Premium Partners
