Crypto News: Going by the recent court statements from the U.S. Securities and Exchange Commission (SEC), chances are that the agency could soon file for a request to appeal against the XRP lawsuit Summary Judgment soon. Already, the crypto market has been weighing on several options left before the US SEC if it wants to challenge the decision. However, it is important to analyze what could Ripple do next if the US SEC manages to win the appeal. Meanwhile, the XRP price is maintaining sideways action after having some correction after the Summary Judgment led rally.
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XRP Token Holders, Not Investors
Recently, US SEC chair Gary Gensler evaded a question on the Ripple lawsuit ruling citing the agency takes a collective decision with all the other commissioners. Interestingly, he repeated his warning to ‘investors’ about the crypto market, to which American businessman Mark Cuban took objection. He said,
“(Gary Gensler) is in the habit of exclusively calling token holders investors. He knows that is incorrect, but it serves his purpose.”
John Deaton: The Howey Factors
Reacting to Gensler’s comment on the question of the SEC going for appeal, John Deaton, the attorney representing token holders in the lawsuit, said the judge will have a cushion of the first two Howey tests satisfying the ruling that the programmatic sale of XRP tokens to retail traders is not a securities transaction.
“If the SEC won on appeal regarding the 3rd factor, the case gets Remanded for Judge Torres to apply the other two factors, where she likely finds that those factors are lacking – giving us the same practical result we have today.”
As per the Howey test, transactions are deemed to be investment contracts if one invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party.
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