Cryptocurrency Regulation
Go Howey! While Ripple is racking up one victory after another, the SEC still seems determined not to let it go. In fact, the regulator, led by Gary Gensler, is continuing its 2020 offensive at any cost, a situation that is prompting those responsible for the Ripple Labs structure to continue their defensive efforts. The opportunity to review the legitimacy of the Howey test used to link its XRP cryptocurrency to financial security.🔥🔥
Ripple and SEC: The Beginning of the End?🔥🔥
The SEC seems to be clinging to Ripple like a crustacean on a rock. As it continues its 2020 proceedings, despite a 94% reduction in the initial fine last August, but also a partial refusal to classify its XRP cryptocurrency as a security acquired since July 2023.🔥
The severity of the situation was made clear by his chief lawyer, Stuart Alderotti, in a recent post on the X Network, because according to him, the regulator’s goal would be to “try to create distraction and confusion for Ripple and the industry.”🔥
But what is the SEC objecting to, as part of its latest appeal against Ripple? Well, that famous rejection of the financial security status it has wanted to apply to the XRP cryptocurrency for (very) many years.🔥🔥
A new move requires Ripple Labs to file Form C — a pre-argument statement for civil appeal — in response to the SEC’s appeal. The crypto company could also simultaneously seek a “new” reassessment of the use of the Howey test in the SEC’s proceedings.
Because the US regulator is not the only one who can deny the stages of this process. And questioning the Howe test would rule out once and for all the financial security at the heart of this case. Although the main sticking point is the absorption of XRP into an investment in a company with a reasonable expectation of profits due to Ripple’s efforts.🔥🔥
Because the length of this matter is not only related to the authority of the regulator. In fact, Ripple’s desire to never give up contributes greatly to its crazy extension. A situation that could soon find a more favorable outcome. Because everything indicates that Gary Gensler’s position as head of the SEC will not continue in the current presidential election, whichever side wins.🔥🪙$XRP