John Deaton, through his Twitter account, reported that SEC Commissioner Hester Peirce has acknowledged that her colleagues at the US Securities and Exchange Commission (SEC) were misleading with regard to the Howey Test for XRP.
Deaton claimed that the SEC’s evaluation of XRP did not consider each transaction individually, and stated that XRP satisfies the requirements of the “common enterprise” and “expectation of profits” components of the Howey test.
Peirce was cited as saying that the SEC’s analysis was insufficient, as it focused on the token itself instead of the conditions surrounding the token’s offering and sale, such as the contract, transaction or scheme.
The SEC holds the power to investigate any promoter who directly sells any commodity or asset, including tokens.
Additionally, in the case of investment contracts, the underlying asset is not considered a security, and the Howey test must be conducted before any offer or sale.
Impact of the XRP Lawsuit On The Crypto Industry
According to Deaton’s statement, John Deaton believes that Judge Torres will rule against the SEC’s request for summary judgment in the lawsuit involving Ripple XRP, as a result of the SEC’s dishonest evaluation of XRP’s Howey Test.
The ongoing legal battle between Ripple and the SEC has the potential to greatly impact the value of cryptocurrencies as a whole. The fluctuations in XRP’s value are widely monitored in the industry.
The crypto community is eagerly anticipating the outcome of the Ripple case, as it may have similar ramifications as the recent SEC lawsuit against blockchain-based sharing service LBRY. After the verdict in the LBRY case, LBC’s stock price saw a significant increase.
Morgan’s XRP Prediction
Lawyer and crypto industry expert Bill Morgan was asked about the potential for XRP to see a similar price increase if the SEC loses their lawsuit. At the time of writing, XRP had already experienced a 20% increase in value over the past 30 days, reaching $0.41.
Source: https://coinpedia.org/news/sec-commissioner-admits-to-dishonest-evaluation-of-xrps-howey-test/