"Persevere Ripple, the SEC will not give in."
Investors must have known that the legal dispute in court between the Securities and Exchange Commission (SEC) of the United States (US) and Ripple (XRP) has not yet found a solution.
Although the court has laid out a specific definition of securities, SEC Chairman Gary Gensler's actions regarding his approach to cryptocurrencies through the Howey Test* have caused Attorney John Deaton to slam him.
*A legal test used in the US to determine whether a transaction qualifies as an investment contract and is treated as a security under federal law
Explained in more detail, Gensler has taken steps based on his own ideas in determining how digital assets should be regulated to affect the entire crypto market.
Through the Howey Test, a transaction is a security if it is an investment of money in an ordinary enterprise that derives profit from the efforts of others, therefore the element must be met if one wants to prove the investment contract as a security.
It is understood that the XRP lawsuit that lasted for two years was claimed by XRP recently that the sale of their digital assets will become securities in the future.
According to Deaton, regulatory clarity is intended to protect various parties but unfortunately the SEC is exploiting the legal uncertainty about crypto through rather aggressive actions.
As of this writing, XRP price has plunged by 0.30% to $0.46 in the last 24 hours with a market capitalization of $23 billion and has recorded a decline of around 1.34% over the last week.
