XRP News: The legal tussle between Ripple Labs and U.S. Securities and Exchange Commission (SEC) has kept the crypto industry on the hook. A much awaited Summary Judgment in the case is expected to update the categorization of the digital assets. However, Ripple Legal Officer hinted why they have an upper hand in the fight against the US SEC enforcement.
Ripple Set To Recieve A Win Against US SEC?
Stuart Alderoty, Chief Legal Officer of Ripple shared two lawsuits where the US SEC argued over the ‘Common Enterprise’ matter and wasn’t able to prove it on Howey Test.
He mentioned the SEC v. W.J. Howey Co. (1946) and stated that the SEC unsuccessfully argued that an investment in a ‘Common enterprise’ was unnecessary provided. Alderoty added that there was a “community of interest. He claimed that the SEC was wrong during the argument then and is stand wrong on the matter.
Ripple’s Chief Legal Officer highlighted the Revak v. SEC Realty Corp case which exposes the commission’s take on categorisation. Alderoty called it the SEC’s sleight of hand. He mentioned that without a “commons enterprise” it doesn’t matter whether ‘the fortunes of investors” are tied to the efforts of others. However, he further added that the Howey test is not “so easily satisfied”.
John Deaton, Amicus Curiae in the XRP lawsuit brought up that the SEC has been raising confusing theories around the common enterprise. At first, it claimed the the Ripple was the common enterprise. Then it pushed that Ripple forced them to concede XRP holders receive no interest in the firm by owning XRP tokens.
