The crypto community, particularly those who are XRP enthusiasts, has welcomed the news of Coinbase’s lawsuit against the SEC. Many have expressed support for Coinbase’s decision to challenge the SEC’s actions. The outcome of the Coinbase lawsuit is uncertain, and it remains to be seen how it will impact the ongoing legal battle between the SEC and Ripple Labs.
John Deaton, who has been advocating for the interests of XRP investors and holders in the ongoing legal battle between Ripple Labs and the SEC has argued for long that XRP should not be considered a security under the Howey test.
In his latest Tweet, he said that the SEC has not cited a specific case in the past 76 years that directly addresses the issue of secondary market sales of a digital asset like XRP.
He wrote, “I argued the SEC lawyers lacked the good faith required to argue that secondary market sales of #XRP – offered completely independent from Ripple – were also securities. The SEC can’t cite one case in 76 years since Howey was decided that suggests otherwise.”
In the context of the SEC’s case against Ripple and XRP, the SEC may argue that the nature of the transactions in question falls within the definition of security as established by the Howey test and subsequent legal precedents. The Howey test has been used by courts for decades to determine whether a transaction qualifies as an “investment contract” and therefore as a security.
The wait for the Ripple case Summary Judgement grows while there is a significant discussion regarding the SEC vs XRP. The Summary Judgement could be made before May 6, 2023. A summary judgment is a ruling made by a court without a full trial, based on a review of the evidence and arguments presented by both parties.
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