In a recent Twitter statement, John Deaton disclosed that SEC Commissioner Hester Peirce revealed that her U.S. SEC counterparts were deceptive about the Howey Test for XRP.
Deaton asserted that the Securities and Exchange Commission’s (SEC) assessment of XRP didn’t consider each transaction independently. He further notes that XRP meets the ‘common enterprise’ needs and ‘expectation of profits’ components of the Howey Test.
Pierce believes the SEC needs amendments
Peirce was quoted as saying that the SEC’s analysis needed to be revised because it focused on the token itself rather than the circumstances around the offering and sale of the token, such as the agreement, transaction, or scheme.
According to Peirce, this focus on the token rather than the conditions surrounding its offering and sale needed to be increased. The SEC can investigate any promoter directly selling any commodity or asset, including tokens.
In addition, in the case of investment agreements, the underlying asset is not regarded as a security, and the Howey Test must be carried out before the offering or sale of the investment contract.
Could this affect the lawsuit?
As a consequence of the SEC’s dishonest appraisal of XRP’s performance on the Howey Test, John Deaton thinks that Judge Torres will decide against the SEC’s motion for summary judgment in action concerning Ripple XRP, as stated in Deaton’s statement.
Ripple and the SEC are now engaged in a legal struggle, which has the potential to have a massive impact on the value of cryptocurrencies in general. Many people closely follow the changes in the price of XRP in the business.
The cryptocurrency industry is keenly awaiting the verdict in the Ripple case because it may have repercussions comparable to those of a recent lawsuit brought by the SEC against a blockchain-based sharing service called LBRY.
Following the announcement of the decision in the LBRY case, the price of ABC’s shares rose significantly.