📰 Table Of Contents
Ripple Labs vs. SEC: The Ongoing Conflict
The ongoing conflict between Ripple Labs and the SEC centered on the XRP lawsuit intensified on Wednesday, with Ripple’s Chief Legal Officer Stuart Alderoty accusing the SEC of failing to provide clear guidelines for crypto regulation.
Ripple’s Response to SEC Director’s Speech
Following remarks at the Practicing Law Institute condemning the crypto sector’s non-compliance with regulators, Alderoty alleged that Grewal’s statements failed to paint a clear picture of the regulatory atmosphere. In a string of posts, Alderoty claimed that the SEC has failed to provide “clear crypto guidance” while adding and subtracting “factors from the Howey test at whim.”
The Howey Test and Crypto Regulation
Established by the U.S. Supreme Court in 1946, The Howey test is a legal framework designed to adjudicate what offering constitutes an investment contract (a.k.a. security) and has been at the heart of critical regulatory debate regarding the crypto sector.
Ripple’s Victory and SEC’s Claims
Ripple won a partial victory in the case last year, with U.S. District Court Judge Analisa Torres ruling that the SEC’s unregistered securities claim was incorrect. Torres found the crypto exchange guilty of breaking security laws by offering XRP to several institutional buyers.
Upcoming Trial on XRP Classification
Ripple and the SEC are due to face off in a trial later this month regarding the classification of XRP as a security.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
