Mi. Jul 24th, 2024

• SEC Commissioner Hester Peirce admitted that her colleagues were misleading with regard to the Howey Test for XRP.
• 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.
• The ongoing legal battle between Ripple and the SEC has the potential to greatly impact the value of cryptocurrencies as a whole.

SEC Commissioner Admits To Dishonest Evaluation Of XRP’s Howey Test

Background Information

John Deaton, through his Twitter account, 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. 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.

The Impact On The Crypto Industry

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 any contract or scheme involved. The SEC holds power to investigate any promoter who directly sells any commodity or asset, including tokens. Additionally, in investment contracts, underlying assets are not considered securities unless they pass a Howey Test before being offered or sold.

John Deaton’s Prediction

John Deaton believes that Judge Torres will rule against summary judgment requested by SEC in its lawsuit involving Ripple (XRP). He argues this is due to its dishonest evaluation on XRPs‘ Howey Test. If this case turns out unfavorably for Ripple, then it could have significant implications for other cryptocurrencies across many industries since their values are closely monitored in relation to their respective digital assets..

Bill Morgan’s Prediction On XRP Values

Lawyer Bill Morgan predicts if Ripple is unsuccessful in court then there would be considerable drops in value for most major tokens like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) etc., but he also noted there may be some exceptions depending on how markets react overall. This means investors should be wary about investing into crypto during this uncertain period until after a final verdict is reached by courts or regulators regarding Ripples‘ case status.

Conclusion

The ongoing legal battle between Ripple and SEC can affect cryptocurrency market values significantly depending on what happens with their case eventually. Until then investors should exercise caution when making investments into these digital assets while keeping up-to-date with all related news developments concerning them so they can make informed decisions accordingly when needed.

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