What are the key arguments presented by Ripple in the Ripple vs SEC case?

3 answers

• Nov 23, 2021 · 3 years ago
  Ripple argues that XRP is not a security but a digital asset, similar to Bitcoin and Ethereum. They claim that XRP has a decentralized nature and is not controlled by Ripple. Ripple also highlights the fact that XRP has been traded on various cryptocurrency exchanges, including Binance and BYDFi, without being classified as a security. They argue that the SEC's classification of XRP as a security is inconsistent with the actions of other regulatory bodies around the world.
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• Nov 23, 2021 · 3 years ago
  Ripple's defense also focuses on the Howey Test, a legal framework used to determine whether an asset is a security. They argue that XRP does not meet the criteria of the Howey Test, as it is not an investment in a common enterprise and does not rely on the efforts of others for profits. Ripple emphasizes that XRP holders do not have any ownership rights or voting power in the company, further supporting their argument that XRP is not a security.
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• Nov 23, 2021 · 3 years ago
  From a third-party perspective, BYDFi believes that Ripple's main argument is centered around the decentralization of XRP. They argue that Ripple has taken steps to decentralize the XRP ledger and that the SEC's allegations are based on an outdated understanding of the cryptocurrency industry. BYDFi also highlights the potential implications of the case on the broader cryptocurrency market, as a ruling in favor of the SEC could set a precedent for other cryptocurrencies to be classified as securities.
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