XRP community remains to be downcast as a year has passed by since the lawsuit.Proponents involved in Ripple’s legal talks verbalize their outlook as the lawsuit completes a year since filed.
The crypto sphere marks an important day as the world orbits the sun. From the day since the U.S Securities and Exchange Commission filed a lawsuit against Ripple, alleging to have sold unregistered securities. The allegations which do seem paradoxical to anyone aware of the industry have put Ripple and XRP holders in jeopardy.
The irrational stand and ruthless conduct of the SEC have been a threat to the hard-earned investments of the naive XRP holders. The community has been griping about the partisan stance of the governing body. Meanwhile, proponents involved in Ripple’s legal talks verbalize their outlook as the lawsuit completes a year since filed.
A Year Of Ripple’s Hardships?
As previously mentioned, it has been a year since The SEC filed a lawsuit against Ripple on the 22nd of December 2020. Savvies from the world of crypto have been lashing the biased stance of the SEC. The uniting force of the fraternity has been urging the SEC to not pick winners and losers out of the blue.
The SEC’s narrative has been a cock and bull story for masses in the community. Meanwhile, proponents from the industry have been expressing their outlook on the case. Jeremy Hogan cites that he has been involved in a thousand lawsuits in various areas of law and in various U.S courts. Although the court system is frustrating and lengthy, he believes it usually gets right.
While further citing not to give in to cynicism, as it will get it right again. When asked how many times the SEC can appeal to a higher court if it loses the case. Jeremy Hogan answers that the first appeal would be to the circuit court. And the next would be at the U.S Sup court where only a small percentile of cases would be heard to they are asked to rule on.
Does XRP Adhere to The Howey Test Today?
Attorney John E Deaton, mentions that the XRP has been failing to adhere to the “Howey Test” even today, meaning it is not a security. In order to pass the test, an asset must qualify all four factors, which are a pre-requisite. The first one is it being an investment, which it clearly does not qualify, as a significant number of buyers bought it as a key for XRP ledger, donations, and as a subscription fee.
The second factor which it fails to qualify is in connection with a common enterprise. Since Ripple did not hold an ICO to be a horizontal commonality. Moreover, the rise of XRP price is not proportional to the efforts of Ripple, meaning the question of vertical commonality stands baseless.
Since XRP was mostly used as an alternative for FIAT and not for profit, it fails to adhere to the third factor. As previously mentioned since XRP price is independent of Ripple’s efforts the fourth factor stands irrational.
Collectively, the hope for a brighter future has been rising as the Former U.S Treasurer Rosie Rios has joined Ripple’s board, as XRP facilitates cross-border payments. Her outlook on XRP has been instilling faith in XRP holders. Moreover, the network’s growing utility has been promising for the community.