Why is XRP Claimed as a Security by the SEC?
In the midst of a long-running legal battle between the SEC and Ripple, a recently filed motion for summary judgment brings relief to the XRP community. Experts are suggesting that the commission has failed to determine that XRP is a security.
Can SEC really prove its claim?
However, Attorney James Filan has interpreted the SEC’s arguments from the submitted motions. He states that the commission says that they aren’t saying that XRP is a security per se.
It claims that any purchase of XRP is an investment in a common enterprise that comprises Ripple and its other native token holders. The SEC asserts that whether it is happening via horizontal or vertical commonality, it is an investment in the common enterprise.
With this argument, the SEC suggests that while XRP may not be a Security per se. However, there is no other feasible way to sell or offer XRP except as a Security.
Filan mentioned that the SEC is trying to get judgment over the incorporated secondary sales.
XRP lawsuit with SEC
Meanwhile, John Deaton, Amicus Curiae in the Ripple lawsuit highlighted what the SEC is missing in its crucial Summary Judgment. He said that the SEC is not relying on any expert comments. While it has also failed to attempt to prove the price correlation of the token.
There is no comment given by the SEC which reflects efforts done by Ripple to control its prices. However, there is no such testimony that can claim that XRP holders or investors were dependent on the efforts of the blockchain firm.
However, Filan reported that the attorney Bethan Rhian Jones submitted an application to join Ripple’s defense team. He mentioned that Jones is with Kellogg Hansen. This will certainly help the blockchain company strengthen its team and keep it simple to judge.