Attorney Highlights Why SEC Grades XRP As A Security

CRYPTOCURRENCY

Products You May Like

In the ongoing legal case between the SEC and Ripple Labs, the commission declared XRP as a security. However, there seem to be some twists through the unfolding events in the lawsuit.

The US Securities and Exchange Commission is one of the notable regulators in the crypto space. However, as crypto assets’ adoption and acceptance became broader, many counter activities started springing up within the industry. In addition, the increasing negative impacts and numerous losses of investors’ funds spiked the need for cryptocurrency regulation.

Several jurisdictions have different approaches to controlling and monitoring virtual assets. While some countries banned crypto assets, others exercised subtle control. Despite the rigorous methods of some watchdogs, their presence is helping to protect users.

The SEC meets aggressive enforcement action on any asset and service company that defaults on its rules. The high-handedness of the commission’s regulatory approach led to its lawsuit with Ripple XRP.

Reasons SEC Classified XRP As Security

The Ripple community is getting some calmness through the process flow from some motions filed for the Summary Judgment. According to some experts, the SEC failed to authenticate the XRP token as a security.

From the submitted motions, attorney James Filan interpreted the commission’s arguments in the case. He noted that the commission reports that it wasn’t calling XRP security. The lawyer stated that the commission intends to receive judgment on the case through the incorporated secondary sales of the token.

According to the arguments, the SEC claims that buying XRP is an investment in a common enterprise. This includes Ripple and its token holders. To the commission, the purchase remains an investment in the common enterprise through vertical or horizontal commonality.

In its line of argument, the SEC implies that XRP may not be a Security per se. But, its sales approach proves otherwise. This is because the token has no other possible sales stance but as a Security.

Commission Misses Crucial Points

Over the past few days, the Amicus Curiae in the lawsuit, John Deaton, pointed out crucial things the SEC is missing in Summary Judgment. Deaton stated the commission failed to provide any price correlation of the XRP token. Also, it could not rely on experts’ comments for its motions.

Attorney Highlights Why SEC Grades XRP As A Security
Ripple is on an upward spree l XRPUSDT on Tradingview.com

According to Deaton, the commission lacks any comment that reflects the influence of Ripple to control the price of XRP. Also, no testimony can prove that XRP holders depended on or acted on Ripple Labs’ efforts.

Recall that the SEC filed the lawsuit against Ripple Labs, accusing the firm of selling over $1.3 billion of Ripple. The commission stated that the sales were between 2013 and 2020. The drag in the case has been if XRP is a security or a currency.

Featured image from Pixabay, Chart: TradingView.com

Products You May Like

Articles You May Like

The Final Cut Reviews; Deet n Bax Save th’ World – A Stoner Comedy Starring Jason Mewes, Craig Michaelson and Weston Cage.
Deet n Bax Save the World Movie Starring Jason Mewes Premier on 4/20/2015 in Portland
Feature Film “Deet n Bax Save the World” Starring Jason Mewes to be Released on 4/20/2015 ”Deet n Bax Save the World” an Action Stoner Comedy starring Jason Mewes produced by TruEarth Entertainment.
TruEarth Entertainment to Deliver First Feature Film Starring Jason Mewes
Deet n Bax Save the World Movie – Sex, Guns & Weed!
Deet n Bax Save the World wrapped on November 4th!
Deet n Bax Save the World resumes filming this Monday in Portland Oregon!
Deet and Bax Save The World Movie Resumes Filming Soon!
Police take down ‘super cartel’ dealing one-third of Europe’s cocaine trade – video
World Cup LIVE: Costa Rica earn shock win as Iran make explosive statement on BBC pundit
What are the rules for inheriting ISAs? Tax ‘advantages’ explained
Johnny Depp Pirates of the Caribbean ‘comeback’ update spells bad news for Disney fans
Study reveals a wide variation in the water needs of people around the globe

Leave a Reply

Your email address will not be published. Required fields are marked *