SEC’s Ripple and XRP Decision Is Nonsense!
TechCrunch founder Michael Arrington deals with the case filed by the US Securities and Exchange Commission (SEC) against Ripple .
In a new interview with Layah Heilpern, Arrington discusses the Howey test established in a Supreme Court case and states whether certain transactions qualify as investment contracts subject to securities laws.
According to the SEC, an investment contract exists when money is invested in a joint venture with a “reasonable expectation” that profits will be derived from the efforts of others.Arrington says he believes the test is outdated and irrelevant in the digital age.
“Whether something is a security, or even asking that question, is up to the SEC. They want everyone to use their own definitions to decide what is a security and what is not.
We buy cryptocurrencies in hopes of making money when expressed in dollars. We do this because we no longer believe in dollars. Is this a security? Maybe I don’t know. It depends, because the point is just “Is this a security?” It consists of the question. “Is this a guarantee?” The question can also be asked. If it’s a security, which is a perfectly legal definition, then the SEC can really hurt you.
Blame Ripple Is Nonsense
I guess all these are in terms of securities. We all buy these because we are trying to get into assets that will protect us from what the dollar is doing. But no, we’re looking at the hundred-year Howey Test, which is absolutely useless in a modern world. This is bullshit.
Do I think Ripple [XRP] is a security? From my point of view, that doesn’t matter. What is a security? What is not a security poses a completely irrelevant situation. What really matters depends on whether you just let the rich trade an asset or let everyone buy and sell an asset.Ultimately, Arrington also says he hopes the case can give cryptocurrency companies clarity on how they can operate legally in the US.
“I’m hoping to get some regulatory clarity from this. But I also think the SEC is looking to chock Ripple’s business. Now, that means pure speculation based on nothing but speculation.
Also, the SEC is an institution that changes over time and from the perspective of SEC heads. So what the SEC wants to do over time will depend largely on what the executive wants to do over time. So it’s hard to say something clear. I believe the SEC probably wanted us to go to court and we’ll see what happens if he goes to court, but I don’t know. “