Ripple Defence Against the SEC
Despite officials making it clear they do not view cryptocurrencies like Bitcoin or Ether as securities, they are attempting a different path with XRP.
In a mock defense scenario, Ripple argues that eight years of price data show XRP does not move based on news about Ripple. Unlike companies that arose as a result of the ICO boom, Ripple will argue that Ripple Labs existed as a firm for many years prior to the creation of XRP.
Ripple will most likely argue that its own sales of XRP were done through market makers on a blind basis-purchasers of XRP were not aware they were buying from Ripple and therefore it XRP wouldn’t legally qualify as an investment security.
The SEC has taken particular offense to Ripple Labs registering the trademark for XRP in 2013, pointing to premeditation and close affiliation.
The SEC will most likely argue that the flexibility in the definition of a security implied by the Supreme Court Howey decision of 1946 will allow it to successfully argue XRP acted as an investment security in court.
Despite all of these things, the incoming Biden presidency has the potential to derail any SEC pursuit of Ripple
References:
https://sg.finance.yahoo.com/news/how-ripple-plans-to-defend-sec-charges-over-xrp-token-215905856.html https://www.msn.com/en-us/money/markets/how-ripple-plans-to-defend-sec-charges-over-xrp-token/ar-BB1cN7X2
