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XRP Lawyer Warns Crypto Traders About Commission’s Next Move

The long-running battle between Ripple and the US Securities and Exchange Commission (SEC) has taken another turn in its actions.

Now, the SEC has added more virtual currencies to its list of securities.

The Howey test is a standard used to assess whether a trade should be classified as a security or an investment contract, as used by the Securities and Exchange Commission in financial investments.

Investors put their money or other assets into a company or organization with the expectation of making a profit. Additionally, such profits must result from the publisher’s actions; Investors cannot influence them.

Meanwhile, XRP’s lawyers have raised their voice and warned supporters of the crypto community and Congress, calling the SEC’s move an illegal expansion of Howey’s test.

Referring to the current dispute between the SEC and Ripple, John Deaton, a lawyer for the XRP holder, warned cryptocurrency traders to follow the latest developments of the SEC closely. Deaton also spoke about the SEC’s recent discussion in its summary ruling against LBRY.

 

According to John Deaton, Gary Gensler is heading towards an illegal extension of the law. In general, it can be claimed that the buyer also expects a profit, which makes it a guarantee. Deaton confirmed that the judge will issue a ruling in the coming months.

The allegations made by the Securities and Exchange Commission about the cryptocurrency XRP in the Ripple lawsuit were brought up by XPP attorneys. He said that according to the agency, XRP represents all of Ripple’s operations – but the token itself represents the agreement between the investor and the company.

What’s Next?
Furthermore, Deaton notes that if the court approves this move, cryptocurrency traders will face trouble.

The Securities and Exchange Commission has indicated that the value of the asset will not matter in this case. It can be said that a customer who buys a security to benefit from it, expects an increase in its price.

It is clear that the Securities and Exchange Commission (SEC) cryptocurrency investors can invest their money without the participation of promoters.

SOURCE

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