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The U.S. Securities and Exchange Commission has suggested that it may appeal a recent ruling on the Ripple Labs lawsuit, which deemed XRP to not be a security when sold to retail investors. <\/p>\n
The SEC argues that the ruling goes against \u201cfundamental securities laws principles\u201d such as the Howey Test, which determines what falls under the category of an investment contract or not. <\/p>\n
\nDo we really want a judge to ask herself: Does my strict application of the Howey test in this case result in an outcome in 2023 that comports with the policy implications behind a 1934 statute? https:\/\/t.co\/acMNRc00B6<\/p>\n
\u2014 John E Deaton (@JohnEDeaton1) July 22, 2023<\/a><\/p><\/blockquote>\n
The SEC\u2019s latest comments on the Ripple Labs lawsuit were made in a separate lawsuit against Terraform Labs and its founder Do Kwon, over allegedly \u201corchestrating a multi-billion dollar crypto asset securities fraud.\u201d <\/p>\n
As per the SEC\u2019s July 21 response to a motion to dismiss from Terraform Labs \u2014 in which the potentially precedent-setting Ripple Labs ruling was referenced by the defendants \u2014 the SEC highlighted a host of issues it holds against the court\u2019s recent decision on XRP. <\/p>\n
\u201cContrary to Defendants\u2019 assertions, much of the Ripple ruling supports the SEC\u2019s claims in this case and rejects arguments Defendants have raised here. However, with respect to the Programmatic and other sales, the SEC respectfully avers that Ripple conflicts with and adds baseless requirements to Howey and its progeny,\u201d the SEC stated, adding that:<\/p>\n
\u201cRespectfully, those portions of Ripple were wrongly decided, and this Court should not follow them. SEC staff is considering the various available avenues for further review and intends to recommend that the SEC seek such review.\u201d<\/p><\/blockquote>\n
Related: <\/em><\/strong>XRP price searches for a fresh bullish catalyst to trigger a move above $1<\/em><\/strong><\/p>\n
The SEC\u2019s statements come just a few days after SEC Chair Gary Gensler expressed his disappointment over the court deeming XRP to not be a security when sold to retail investors.\u00a0 <\/p>\n
\u201cWe are pleased that the court addressed [\u2026] that a token for institutional investors is a security [\u2026] disappointed in the other aspect about retail investors. We are still taking a look at that and considering it,\u201d Gensler stated in a July 17 interview with Yahoo Finance. <\/p>\n
On the same day, Gensler also appeared at the National Press Club to give a talk on artificial intelligence, and was questioned if the court rulings represented an urgent need to establish clear regulation for the industry. <\/p>\n
Gensler however, failed to provide a specific answer to such. <\/p>\n
\nThe SEC arguing that a court didn\u2019t follow Howey is rich\u2026 On its own website, the SEC has acknowledged that Fed courts require commonality & then it goes on to say that it doesn\u2019t require commonality in its analysis or view commonality as a distinct part of Howey. If the SEC\u2019s\u2026 https:\/\/t.co\/CX6Kwfh3cJ<\/p>\n
\u2014 exlawyer.eth\/tez (@exlawyernft) July 22, 2023<\/a><\/p><\/blockquote>\n
Magazine: <\/em><\/strong>Crypto regulation \u2014 Does SEC Chair Gary Gensler have the final say?<\/strong><\/p>\n<\/div>\n