The lawyer of Ripple faces the SEC and the definition of crypto as “security”
The post The lawyer of Ripple faces the SEC and the definition of crypto as “security” appeared on BitcoinEthereumNews.com.
The legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) of the United States continues to dominate the headlines of the crypto world. At the center of the dispute is the SEC’s accusation that XRP, the cryptocurrency issued by Ripple, is a “security” (a financial instrument). However, the Chief Legal Officer (CLO) of Ripple Labs has recently openly contested the repeated use of the expression “security” by the SEC, arguing that it is an invented term without any legal basis. This clash does not only concern Ripple, but it could have significant implications for the entire cryptocurrency sector. Ripple and SEC: an unprecedented legal battle in the crypto ecosystem Since December 2020, when the SEC initiated a lawsuit against Ripple Labs, accusing the company of raising over $1.3 billion through the unregistered sale of XRP, the case has become a benchmark for cryptocurrency regulation in the United States. The SEC argues that XRP should be considered a “security” under U.S. federal laws, and therefore subject to strict regulation. A “security”, in legal terms, refers to a financial instrument such as stocks, bonds, or other investment instruments that represent a financial stake. However, Ripple has countered these accusations, arguing that XRP is a cryptocurrency like Bitcoin or Ethereum, which the SEC does not consider “securities”. Ripple’s defense is based on a different interpretation of the Howey test, the legal criterion used to determine if an asset is a “security”. According to Ripple, XRP does not meet the requirements of the Howey test and therefore should not be subject to the same regulations as traditional securities. Recently, the Chief Legal Officer of Ripple Labs has further raised the stakes against the SEC, criticizing the use of the term “securities”. According to the CLO, this terminology has no legal basis…
Filed under: News - @ September 3, 2024 10:25 am