Ripple vs. SEC: XRP Lawyer Warns Crypto Traders Of The Commission’s Next Move

The long-running battle between Ripple and the US Securities and Exchange Commission (SEC) has taken yet another turn in its proceedings.

Now, the SEC has made an addition of more virtual currencies to its securities list. 

The Howey test is a criterion used to assess whether a trade should be classified as a security or an investment contract and is also used by the SEC on financial investments. 

Investors put their funds or other assets into a business or organization with the expectation of making a profit. Additionally, these earnings must result from the publisher’s actions; investors cannot impact them.

Meanwhile, the XRP lawyer has raised his voice and is warning crypto community supporters and Congress, calling SEC’s move an illegal expansion of the Howey Test.

Referring to the current SEC vs ripple ripple m***[email protected] Crypto / Blockchain SolutionPayment solution dispute, John Deaton, XRP holder’s lawyer is warning the crypto traders to closely watch SEC’s latest developments. Deaton also spoke about the SEC’s recent discussion in the summary judgment against the LBRY.

As per John Deaton, gary gensler gary gensler chairman at US Securities and Exchange Commision Gary Gensler is an enthusiastic leader and the current chair of the U.S. Securities and Exchange Commission (SEC). He has the extreme experience that spans wall street, government regulation, and an angel teaching about cryptocurrencies and blockchain at MIT. He announced several initiatives to enhance investor protections in the $2 trillion cryptocurrency market. He previously led the Biden-Harris transition’s federal reserve, Banking, and securities regulation agency review team.    He was awarded Treasury's highest honor, the Alexander Hamilton Award, and also was a recipient of the 2014 Frankel Fiduciary Prize. He was born on October 18, 1957, into a Jewish family, in Baltimore, Maryland. Graduated from the University of Pennsylvania, earning a Master's degree in Business Administration. Additionally, he is also a professor at the MIT Sloan School of management. He has served in various governmental roles since the 1990s, such as the treasury department, Sarbanes-Oxley, CFTC, Swaps, Enforcement, Libor investigation, Maryland Financial Consumer Protection Commission, Securities, and Exchange Commission.    Gary Gensler will probably keep on filling in as seat of the SEC until 2026, accepting his renunciation. He has expressed his desires to present crypto-related approach changes later on that include token commitments, decentralized finance, stablecoins, guardianship, exchange-traded resources, and advancing stages. A few officials as well as his kindred SEC magistrates have scrutinized Gensler for not giving adequate administrative direction on crypto, possibly prompting a standoff between Congress and the association.    The SEC, CFTC, and Financial Crimes Enforcement Network handle advanced resource guidelines in the U.S., however, each with various jurisdictional cases, bringing about an interwoven methodology that crypto firms should explore to work legitimately. Whether 2022 will see a more clear way for organizations in the crypto space is questionable, yet the cosmetics of the SEC's initiative will fundamentally change following the takeoff of chief Elad Roisman in the first month of the year. Chief Allison Lee's term is likewise set to terminate in June 2022. Chairman is heading towards an unlawful expansion of the law. Broadly stated, it may be claimed that the purchaser also anticipates a profit, making it security. Deaton emphasized that the judge would give a decision in the coming months.

The allegations made by the SEC about the XRP cryptocurrency in the Ripple Lawsuit are brought up by an attorney for XPP. He said that, according to the agency, XRP represents all of Ripple’s operations- but the token itself represents the agreement between the investor and the company.

What Next?

Further, Deaton points out that if the court approves this move, crypto traders will be in trouble. 

The SEC implied that the asset’s value would not be important in the case. It can be said that a customer who purchases a security to utilize it, anticipates a rise in its price.

The SEC is clear that cryptocurrency investors can invest their funds without the involvement of the promoters.