• SEC Commissioner Hester Peirce has acknowledged that the US Securities and Exchange Commission’s evaluation of XRP was misleading.
• The SEC’s analysis did not consider each transaction individually, and it focused on the token itself instead of the conditions surrounding the offering and sale.
• John Deaton believes that Judge Torres will rule against the SEC’s request for summary judgment in the lawsuit involving Ripple XRP, as a result of the SEC’s dishonest evaluation of XRP’s Howey Test.
SEC Commissioner Admits To Dishonest Evaluation Of XRP’s Howey Test
Through his Twitter account, John Deaton reported that SEC Commissioner Hester Peirce has acknowledged that her colleagues at the US Securities and Exchange Commission (SEC) were misleading with regard to the Howey Test for XRP.
The Insufficient Evaluation Of The Howey Test
Deaton claimed that the SEC’s evaluation of XRP did not consider each transaction individually, and stated that XRP satisfies the requirements of the “common enterprise” and “expectation of profits” components of the Howey test.
Peirce was cited as saying that the SEC’s analysis was insufficient, as it focused on the token itself instead of the conditions surrounding its offering and sale, such as contracts, transactions or schemes.
The Power Of The SEC To Investigate Promoters
The SEC holds power to investigate any promoter who directly sells any commodity or asset, including tokens. Additionally, in case investment contracts are involved in such dealings then underlying asset is not considered security and hence Howey test must be conducted before any offer or sale.
Impact Of The XRP Lawsuit On Crypto Industry
John Deaton believes that Judge Torres will rule against SEC’s request for summary judgement in lawsuit involving RippleXRM due to their dishonest evaluation of howey test..The ongoing legal battle between Ripple and SEChas potential to greatly impact valueof cryptocurrencies as whole with fluctuations in price widely monitored within industry.
Morgan Prediction Regarding Lawsuit Outcome
Lawyer Bill Morganhas predictedthat judge Torresshall decidein favorofRipple ,resultingin dismissalofcaseagainstthembysecuritiesand exchange commission .Despite this factit is stillunclear whetherripplewill besucceedingornotintheiroverall defense againstthe sec .
It is uncertain what outcome shall arise from this legalbattle but ifripple succeedsit wouldgreatlychangecryptocurrencymarket dynamicsandimpactregulatoryframeworkassociatedwithit .