Welcome to Extreme Investor Network, where we deliver unique and valuable insights into the world of the stock market, trading, and all things Wall Street. Today, we dive into the ongoing battle between Ripple and the SEC, and how it is impacting the future of XRP.
Ripple, a popular cryptocurrency, has been facing scrutiny from the SEC over its XRP token. The SEC has argued that Ripple’s On-Demand Liquidity (ODL) agreements may violate US securities laws, as investors do not expect a profit from these agreements. This is a significant point, as the Howey Test, a key factor in determining if something is a security, includes the expectation of profit as one of its prongs.
Recently, the SEC filed a remedies-related reply brief, stating that Ripple’s stablecoin could be considered an unregistered security, further complicating the legal battle. Judge Torres previously ruled that Ripple had sold unregistered XRP to institutional investors, but also noted that programmatic sales of XRP did not satisfy the Howey Test.
Experts in the field, such as pro-crypto lawyer Bill Morgan and former SEC Lawyer Marc Fagel, have weighed in on the possibility of a settlement. While some speculate that a settlement could lead to a surge in XRP’s price, others warn that an SEC appeal could have the opposite effect, sending XRP’s value plummeting.
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