BREAKING: XRP Won Against SEC. A Win For Cryptocurrencies
U.S. Magistrate Judge Sarah Netburn ruled in favor of Ripple Labs by exempting Ripple's executives from providing their personal financial records to the Securities and Exchange Commission (SEC). Netburn granted the defendants’ motion to reject the SEC’s access to eight years of co-founders Garlinghouse and Larsen’s personal information.
Another big win in the lawsuit against cryptocurrency institutions!
How Does The Ruling 'Ripple' Effect The Crypto Community
The lawsuit is based on the premise that XRP is a security and thus under the scope of the Securities and Exchange Commission (SEC).
The favored ruling for XRP may certainly determine the future of cryptocurrency regulations.
HOWEY Test is Obsolete
The Howey Test was used as a barometer for the SEC's lawsuit. The test which is relied upon for more than 70 years is used to determine whether a transaction should be classified as an investment contract and therefore registered as a security.
Recently published research paper by Professors at Rutgers Law School argues that the Howey test is no longer valid for judging innovations of the 21st century.
What Is A Howey Test?
The Howey Test refers to the U.S. Supreme Court case for determining whether a transaction qualifies as an "investment contract" and is therefore subject to U.S. securities laws.
An investment contract exists if there is an
investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.
Prior to this ruling, in March, Judge Torres dropped a ‘bombshell:
"My understanding about XRP is that not only does it have a currency value but it has a Utility and that utility distinguishes it from Bitcoin and Ether.”
The statement admits to XRP’s utility and currency value.
What Is the Future of Cryptocurrency?
With these developments I can assume or say with confidence that the crypto market will boom and grow even more larger than what it is happening today. Although, I'm pretty sure there will be obstacles along the way since the powers-that-be as history tells us, they can cannot just sit there and do nothing about it.
Especially, if money and control does not belong to their favor.
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