The US Securities and Exchange Commission (SEC) has caused a stir in the crypto world, especially with the appointment of Gary Gensler as Chairman. Crypto lawyer John Deaton has been looking into the potential impact of the SEC’s rules on digital assets.
Investigating the Discrepancies
John Deaton pointed out the inconsistencies in the SEC’s approach to crypto. He referred to William Hinman’s famous “Hinman speech,” which stated that a product designed for builders to invest in a business usually meets the criteria of a security.
Deaton argued that XRP does not meet this description. Nonetheless, the SEC is currently embroiled in a legal battle with Ripple, the creator of XRP. The documents linked to the Hinman speech contradict the SEC’s assertions, and have been examined in depth in court. Nevertheless, SEC Chair Gary Gensler has declared that they will not make these documents available to the public for certain reasons.
Moreover, the SEC’s 2019 Annual Report indicated that a cryptocurrency is unlikely to pass the Howey test and be identified as a security. However, SEC personnel had been allowed to purchase and trade XRP until April 2019.
He stated: “Given this, it is understandable why the SEC’s attitude towards cryptocurrencies has been so inconsistent and perplexing, regardless of your view on Ripple.”
XRP’s Recent Expansion
At present, XRP has experienced a 10% increase in the last week. Despite the ongoing legal battle between the SEC and Ripple, the network has seen considerable progress. Ripple CEO Brad Garlinghouse has expressed confidence that the company will ultimately prevail. Crypto lawyer John Deaton commented that if Ripple fails, it could have an adverse effect on other digital assets or firms.
