The US SEC, which recently won a number of legal battles against companies involved in the cryptocurrency industry, is pursuing Ripple and its executives.
In the long-running Securities and Exchange Commission (SEC) v. Ripple lawsuit, the United States Southern District Court of New York will soon announce a much-anticipated Summary Judgment. A lot of aspects of the cryptocurrency industry are going to change if the XRP lawsuit is successful. However, it’s believed that a decision could additionally enhance some of the authorities’ existing methods for analysis.
Can the US SEC win the XRP(Ripple) lawsuit?
The US SEC, which has defeated numerous crypto-related corporations in court, is pursuing legal action against Ripple and its officials. The commission had early success in the cryptocurrency instances, according to attorney Jeremy Hogan, because those businesses did not bring up the “post-loss obligation” issue.
According to the attorney, Ripple argued that an “investment contract” must have a “contract” in order to exist. But the SEC dealt with a number of cases where, in certain respects, there was no official written agreement. While Howey covers practically any investment purchase, that is where this agreement lands.
In the XRP lawsuits, the US SEC claims that when considered collectively, prongs 2, 3, and 4 eliminate the requirement for the components of a valid contract. It implies that since the “common enterprise” and “expectation of profits” fit in the contract analysis, the Howey test does not necessitate a formal contract.
Hogan claims that the commission won the remaining cases simply by arguing the acquisition of the cryptocurrency from a conventional position. These transactions appear to be the kind of investment or purchase that Howey is meant to record.
Here, Ripple is made possible by maintaining traditional purchases from centralized sellers rather than decentralized ones. He continued by saying that this is the issue that may safeguard US digital assets. For the SEC, a Ripple victory on a Howey analysis would be a serious defeat. He pointed out that while the Howey Test isn’t out of date, it should be updated.
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