Go Howey! While society Rippling wins victory after victory, It seems that the US SEC is still determined not to let the matter go. Indeed, the regulatory body led Fr Gary Gensler maintains its offensive launched from 2020 at all costs. A situation that forces those responsible for the structure of Ripple Labs to continue their defensive efforts. Possibility to return the legitimacy of the Howey test used to associate his XRP cryptocurrency in financial capacity.
Ripple vs SEC: beginning of the end?
The US SEC appears dependent on Ripple like a crustacean on a rock. Because it continues its progress started from 2020, despite a reduction of the original fine by 94%. last August. But also partial refusal to classify its XRP cryptocurrency as a financial security acquired from July 2023.
The relentlessness explained by its general counsel, Stuart Alderoty, in a recent publication on Network X Because, according to him, the goal of the regulatory body would be “to try to create distraction and confusion for Ripple and the industry.”
“The case is not about whether XRP is a financial security as such. XRP is in a unique situation because it is clear (like BTC) that it is not classified as a financial security. The SEC does not challenge this decision, which is based on the laws of that country. »
Stuart Alderoty
But while the SEC questions, in context his latest challenge against Ripple ? Well, this famous rejection of the state of financial security, which wants to apply to the cryptocurrency XRP for (too) many years.
Challenging the Howey test
A new step that requires Ripple Labs fill out form C – For Statement of Preargument on Civil Appeal – in response to an appeal by the SEC. The option for a crypto company to simultaneously claim a “de novo” reconsideration the use of the Howey test in the SEC procedure.
Because the US regulator isn’t the only one who can reject the steps of this procedure. And rethinking the Howey test would once and for all to exclude the state of financial security placed at the center of this matter. With the main point of friction, the assimilation of XRP into investment in business with a reasonable expectation of profits from Ripple’s efforts.
“Honestly, it’s just background noise at the moment. The hard part of the fight is over. Ripple’s business is growing and getting stronger every day even while this appeal process is going on. »
Stuart Alderoty
Because the extended duration of this matter is not only associated with controller instance. In fact, Ripple wishes not to never let go contributing significantly to its insane expansion. A situation that could soon find a more favorable outcome. Because everything points to it Gary Gensler’s position as head of the SEC will not survive the presidential election takes place regardless of the winning side.