The US Securities and Exchange Commission (SEC) continues to regulate the digital asset space. Accordingly, it has recently added more cryptocurrencies to its “securities” list. However, the crypto community and Ripple continue their battle against the SEC. XRP’s lawyer in his case with the SEC intervened. The attorney has alarmed crypto supporters and Congress. He urged executives to take action on the SEC’s timely illegal expansion of the Howey test.
Will the SEC apply the Howey test to more cryptocurrencies?
The attorney was John Deaton, who represented XRP holders in the Ripple lawsuit with the SEC. Deaton pointed out that crypto investors should be aware of the latest activities of the SEC. He also cited the latest argument made by the SEC in the summary judgment against LBRY. According to him, SEC Chairman Gary Gensler is trying to illegally expand the scope of the said securities law. The SEC’s attorney pointed out that even if someone buys a token to use it. Objectively, it is possible to say that the buyer also expects profit. Therefore, cryptocurrencies have the potential to become securities. Deaton stresses that the judge will make his decision within the next few months.
XPP lawyer points to SEC’s claims over XRP token in Ripple lawsuit. Accordingly, he states that the SEC’s thesis claims to include all Ripple efforts on XRP. However, the cryptocurrency itself represents the investment contract with the firm. In addition, this includes the secondary market.
What will happen if the SEC’s argument is accepted?
Deaton warned the SEC what would happen if the argument was accepted out of court. According to him, if the argument is accepted, crypto investors are likely to be in danger. The argument implies that just owning the cryptocurrency leads investors to the joint Ripple venture. According to the argument, the SEC mentions that the utility of the asset won’t matter. Accordingly, it is possible for the investor to purchase a receptive asset with the intention of full consumption. However, this does not change the fact that investors expect a security’s price increase. According to Deaton, the SEC attorney notes that the other end doesn’t even need to be linked to backers. Accordingly, the commission is aware that crypto investors can stake their assets independently of backers.
How about the XRP price?
Ripple has been trading at a low price ever since news of lawsuits with the SEC shook the market. The lawsuit is causing concern among investors. Even the recent decisions in favor of Ripple did not cause a significant rise in the price of the asset. In fact, the coin failed to reach record prices even as many altcoins made ATH at the end of 2021. XRP’s all-time high was recorded at the end of 2018. Since then, Ripple’s native token has been trading at low levels. However, the potential of the token is attracting the attention of all analysts. According to analysts, the conclusion of the SEC lawsuit in favor of XRP has the potential to trigger a massive bullish rally. cryptocoin.com As we reported, XRP is trading at $0.38, up 2.17% in 24 hours at the time of writing.
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