1. BITBILIHome
  2. Article

Pro-XRP Lawyer Challenges SEC’s Justification for Treating Secondary XRP Sales as Securities

• 93 views

TL;DR Breakdown

  • Pro-XRP lawyer John Deaton challenges the SEC’s justification for treating secondary XRP sales as securities.
  • Deaton argues that the SEC fails to apply the Howey Test to each transaction and claims that secondary XRP sales do not qualify as securities.
  • He references the 2nd Circuit, stating that securities law does not apply when a purchaser intends to use or consume the purchased item.
  • The Ripple vs SEC lawsuit is expected to reach a verdict soon, with Ripple hopeful for a positive outcome by the end of the year.

Description

In a recent development surrounding the ongoing legal battle between Ripple and the United States Securities and Exchange Commission (SEC), John Deaton, a prominent lawyer and founder of CryptoLaw, has boldly challenged the SEC’s stance on the classification of secondary XRP sales as securities. Deaton argues that the SEC fails to provide sufficient justification for … Read more

In a recent development surrounding the ongoing legal battle between Ripple and the United States Securities and Exchange Commission (SEC), John Deaton, a prominent lawyer and founder of CryptoLaw, has boldly challenged the SEC’s stance on the classification of secondary XRP sales as securities. Deaton argues that the SEC fails to provide sufficient justification for this claim. This article delves into Deaton’s argument, sheds light on the criticism directed at SEC Chair Gary Gensler, and provides an update on the Ripple vs SEC lawsuit.

Contents
hide

1
Deaton’s Argument Against Secondary XRP Sales as Securities

2
The 2nd Circuit Precedent

3
Criticism of SEC Chair Gary Gensler

4
Conclusion

Deaton’s Argument Against Secondary XRP Sales as Securities

John Deaton has raised an intriguing point by questioning the SEC’s position on secondary XRP sales. Responding to a tweet by former Gibson law firm partner Marc Fagel, Deaton presented a hypothetical scenario illustrating a progressive movement of XRP as a form of payment from Ripple to four other entities. According to Deaton, if the Howey Test, a widely recognized test for determining whether an investment qualifies as a security, is not applied to each transaction, the entities involved cannot be considered to be in a common enterprise with Ripple. Thus, Deaton asserts that secondary XRP sales should not be classified as securities.

The 2nd Circuit Precedent

To support his argument, Deaton references the 2nd Circuit, which states that when a purchaser’s motivation is to use or consume the purchased item, securities law does not apply. By highlighting this precedent, Deaton further strengthens his case against the SEC’s classification of secondary XRP sales as securities.

Criticism of SEC Chair Gary Gensler

Deaton’s criticism extends beyond the SEC’s stance on XRP sales. He specifically targets SEC Chair Gary Gensler for his approach towards cryptocurrencies and the Howey Test. Deaton contends that Gensler’s divergent views on the classification and regulation of cryptocurrencies deviate from the court’s definition of securities established in 1946 in connection to the Howey Test. This divergence, according to Deaton, has caused confusion and uncertainty in the crypto industry.

Ripple vs SEC Lawsuit Verdict Expected Soon: The legal battle between Ripple and the SEC has been a protracted affair, but there is hope that a resolution is on the horizon. Ripple anticipates that the case will conclude favorably by the end of this year. Brad Garlinghouse, Ripple’s CEO, is particularly optimistic that a verdict will be reached within the first half of the year. The release of the Hinman speech, after considerable resistance from regulators, has proven to be a pivotal moment in the ongoing lawsuit.

Conclusion

John Deaton’s challenge to the SEC’s classification of secondary XRP sales as securities has sparked a significant debate within the crypto community. By referencing legal precedents and criticizing SEC Chair Gary Gensler’s approach, Deaton raises valid questions about the regulatory landscape surrounding cryptocurrencies. As the Ripple vs SEC lawsuit draws to a close, the industry eagerly awaits a verdict that could have far-reaching implications for the classification and regulation of digital assets.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:Pro-XRP Lawyer Challenges SEC’s Justification for Treating Secondary XRP Sales as Securities

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月22日 04:49
Next 2023年6月22日 07:00

Related articles

  • Bitget registers influx of Latam users amid SEC’s regulatory clampdown

    TL;DR Breakdown Bitget has registered an increased inflow of users over the last few days following SEC’s issues with Binance and Coinbase. Increased adoption in Latin America drives market share growth upwards. In the wake of legal actions taken against major cryptocurrency exchanges Binance and Coinbase by United States regulators, Bitget, a prominent crypto exchange, has experienced a significant increase in new accounts from Latin America. This surge in user sign-ups has been particularly notable in Brazil and Argentina, leading to substantial market share growth for Bitget in the region. Bitget registered 87% of new users in the last few days According to Bitget, the number of new clients in Brazil skyrocketed by 54%, accompanied by a remarkable 208% surge in total deposits. Similarly, in Argentina, the customer base witnessed a growth of 33%, while funds deposited expanded by an impressive 87%. Bitget also operates in other Latin American countries, including Venezuela, Colombia, and Mexico. Over the past few days, the exchange’s total deposits in the region rose by a staggering 134%. Bitget, with a global clientele of over 8…

    Article 2023年6月13日

  • Does the world actually need the G20 though?

    TL;DR Breakdown In 2009, the G20 was seen as a hope for global cooperation, but its current relevance is under scrutiny. Geopolitical tensions, especially the Russia-Ukraine conflict and China’s evolving role, challenge the G20’s unity. Description When we flashback to 2009, the G20 emerged as a beacon of hope, channeling collective efforts to navigate the turbulent waters of a global financial crisis. Fast forward to the present, and one can’t help but question its relevance. With growing geopolitical tensions, a pandemic that refuses to bow out, and the looming shadow of … Read more When we flashback to 2009, the G20 emerged as a beacon of hope, channeling collective efforts to navigate the turbulent waters of a global financial crisis. Fast forward to the present, and one can’t help but question its relevance. With growing geopolitical tensions, a pandemic that refuses to bow out, and the looming shadow of climate change, the G20’s role is now more under scrutiny than ever. The Promise and the Pitfalls A decade ago, the G20 was celebrated as the successor to the western-centric G8,…

    Article 2023年9月9日

  • Goldman Sachs considers adviser sale as strategy

    TL;DR Breakdown Goldman Sachs contemplates selling its 4-year-old investment advisory business. Bank’s shift suggests refocusing on core strengths amid a changing financial landscape. Recent decisions underscore challenges faced during David Solomon’s leadership tenure. Description Goldman Sachs, the Wall Street titan known for its gilded approach to finance, has once again dropped a bombshell in the ever-evolving financial landscape. The mammoth institution is thinking about parting ways with its investment advisory segment, an ambitious venture it only took under its wing four years prior. While the move may have raised … Read more Goldman Sachs, the Wall Street titan known for its gilded approach to finance, has once again dropped a bombshell in the ever-evolving financial landscape. The mammoth institution is thinking about parting ways with its investment advisory segment, an ambitious venture it only took under its wing four years prior. While the move may have raised many eyebrows, it’s a sobering testament to the bank’s fickle foray into the mass-market consumer space. Goldman Sachs Diversifying Portfolio or Changing Course? It all started with United Capital, a relatively modest player…

    Article 2023年8月22日

  • PacWest Bancorp and regional bank shares swing amid market turbulence

    TL;DR Breakdown Midsize lenders PacWest Bancorp and Western Alliance Bancorp saw their shares rebound amidst speculation that the regional banking sector’s instability may be easing. The KBW Regional Banking Index, reflective of the overall sector’s performance, recorded a notable 7.2% increase, signaling a potential recovery. Despite an initial boost, some regional banks, such as Western Alliance and Zion Bancorp, saw their gains reduced in early trading, indicating persistent volatility in the sector. In an industry tossed by turbulence, US regional lenders PacWest Bancorp and Western Alliance Bancorp are inching their way up the stock market ladder. The banking industry has been battered by recent crises, leading to a volatile market. However, early indications show potential rebounds, possibly signaling a respite from the worst of the regional banking turmoil. PacWest Bancorp, currently exploring strategic options, has been steadily clawing its way back from a crippling downturn, with an increase of 7.9% in premarket trading on Thursday. This follows a promising 22% gain recorded earlier in the week. Meanwhile, Western Alliance Bancorp, a Phoenix-based lender that has recently displayed robust deposit growth,…

    Article 2023年5月19日

  • Sanctions drive BRICS unity as Russia relations deepen

    TL;DR Breakdown Western sanctions against Russia have unintentionally strengthened ties among BRICS nations. BRICS, originally consisting of Brazil, Russia, India, China, and South Africa, recently expanded to include several new members. Post-sanctions, India and China have increased Russian oil imports and explored payment methods outside of the US dollar. Description Amidst the chaotic global energy landscape, the bond among BRICS nations seems to have only grown stronger, largely due to Western sanctions against Russia. The implications of these sanctions, which were a direct response to Russia’s Ukraine invasion, have reverberated beyond Moscow’s curtailed oil revenue. They have inadvertently nudged BRICS closer together, solidifying their alliance … Read more Amidst the chaotic global energy landscape, the bond among BRICS nations seems to have only grown stronger, largely due to Western sanctions against Russia. The implications of these sanctions, which were a direct response to Russia’s Ukraine invasion, have reverberated beyond Moscow’s curtailed oil revenue. They have inadvertently nudged BRICS closer together, solidifying their alliance further. The Unintended Consequences of Western Sanctions While the West’s intent was to penalize Russia, these actions…

    Article 2023年9月5日
TOP