Summary
• The Securities and Exchange Commission (SEC) has requested that the court exclude the expert opinions of nine individuals in a case involving the cryptocurrency XRP.
• The SEC argues that these experts‘ opinions are not relevant to the Howey test, which is used to determine whether an asset constitutes an „investment contract.“
• The SEC stated that the important factor to consider in determining whether something is an investment contract is not whether it has any uses, but whether the asset was primarily sold for its potential for profit rather than for its use.
The Securities and Exchange Commission (SEC) is requesting that the court exclude the expert opinions of nine individuals in a case involving the cryptocurrency XRP. The SEC is arguing that these experts‘ opinions are not relevant to the Howey test, which is used to determine whether an asset constitutes an „investment contract.“
The case involves Ripple, a cryptocurrency firm accused of conducting an unregistered security offering by selling XRP. Ripple has denied the SEC’s allegations. The outcome of this case could have major implications for the cryptocurrency industry, as it could set a precedent for how the SEC views and regulates digital assets.
The SEC’s argument is that the important factor to consider in determining whether something is an investment contract is not whether it has any uses, but whether the asset was primarily sold for its potential for profit rather than for its use. The nine experts named in the SEC’s motion are Professor Alan Schwartz, Peter Adriaens, Allen Ferrell, Borden, Easton, Yadav, Fischel, Marais, Shampanier, and Carol Osler.
The SEC has previously argued that XRP is an investment contract, and that Ripple and its executives should have registered the asset as a security with the Commission. Ripple has maintained that XRP is not a security, but rather a digital asset with many uses.
The SEC’s request for the exclusion of these experts‘ opinions is the latest development in the ongoing legal case between the SEC and Ripple. A ruling in favor of the SEC could have far-reaching implications for the cryptocurrency industry, as it could set a precedent for how the SEC views and regulates digital assets. On the other hand, a ruling in favor of Ripple could provide more clarity on the regulatory status of digital assets and help the industry move forward.
At this point, it is unclear how the court will rule on the SEC’s motion. However, it is evident that the outcome of this case will have a major impact on the cryptocurrency industry, and the industry is waiting with bated breath for a resolution.