The court decision in the case that has pitted Ripple against the SEC for two years is eagerly awaited. In the meantime, this opposition is still making headlines with new revelations about the regulator’s potential setback. Enough to confirm the predictions of victory announced on Ripple.
Towards another historic defeat for the SEC?
In recent weeks, several analysts have predicted Ripple’s victory against the SEC. An event which, according to some, would be unprecedented in that it would create a historical precedent. What if most analysts were wrong on the issue of precedent? What if the expected decision in the Ripple vs. SEC case was, in fact, just a replica of the past?
It is to these questions that the last interventions, by Stuart Alderoty, the legal representative of Ripple, on this file. The legal expert notably referred to an old legal case decided by the Supreme Court of the United States. A file which dates from 1946, but which created a historical precedent on the question of the nature of investments.
Indeed, this lawsuit, says “Howey”, allowed the establishment of what is since called the Howey test. It is a set of clues that make it possible to establish the legal nature of an investment. It is thus used to say whether a transaction can be qualified as an investment contract. An important element to determine its submission to the rules of the SEC.
Drawing a parallel with the current legal battle, Stuart Alderoty recalls that the Howey case established certain principles that are still valid. Rules which, according to him, still plead today, in favor of Ripple. In other words, this legal precedent therefore supports Ripple’s arguments against the SEC.
This development would therefore reinforce the projections in favor of a victory of the crypto firm against the regulator. Suffice to say that the SEC has its work cut out to try to overturn the outcome of a lawsuit that seems folded. This is without taking into account that the regulatory policy of the stock market policeman is decried.
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