Categories: Crypto

Lawyer John Deaton: "SEC misunderstands Howey test in Ripple case"

Lawyer John Deaton, who defends the interests of XRP holders, called on the US regulator to re-examine the Howey test after his statement that XRP has no intrinsic value.

Crypto-Law founder John Deaton once again criticized the US Securities and Exchange Commission (SEC) for not fulfilling its purpose when prosecuting cryptocurrency companies. According to Deaton, the regulator, along with many federal agencies, ignores the law in its desire to achieve the desired goal, as evidenced by the situation with the Ripple company.

Deaton's comments come after Australian lawyer Bill Morgan also criticized the SEC for arguing that XRP has no intrinsic value. Morgan said the SEC made this claim at the summary judgment stage in the Ripple case. Therefore, Deaton recommended that the agency take another look at the Howey test, which helps determine whether an asset qualifies as a security.

The lawyer quoted a passage from it: “The Howey test tests whether the scheme involves the investment of money in a common enterprise with a profit derived solely from the efforts of others. If the answer is yes, then it does not matter whether the enterprise is speculative or not, and whether there is a sale of property with or without intrinsic value.”

Deaton also mentioned former SEC employee Bill Hinman's testimony in the Ripple case. The lawyer quoted his sworn statement: “The SEC is not required to satisfy all the requirements of the Howey test to prove that sales of crypto assets qualify as an investment contract.”

The lawyer cited two main reasons why Hinman could have made such comments: either Hinman was incompetent to lead the SEC's finance division, or he could have lied under oath. At the same time, Deaton noted that Hinman led Alibaba’s IPO in 2014, so he cannot be incompetent.

legenda

Recent Posts

Employees of a fraudulent call center network detained in Russia: details

In Russia, managers and employees of a “branch” of an international network of call centers were exposed. This was reported by RBC-Ukraine...

1 day ago

Why did the judicial “under-reformer” Mikhail Zhernakov decide to criticize the legal profession?

Mikhail Zhernakov is one of the most public figures in the field of judicial reform in Ukraine, which...

1 week ago

The pointless “book club” of the Ministry of Culture

The ministry spent tens of millions on printing unnecessary books in “its” publishing houses. The Ministry of Culture during...

2 weeks ago

More than two state budgets. How money is withdrawn from Ukraine

Over more than 30 years of independence, at least $100 billion has been withdrawn from Ukraine abroad,...

2 weeks ago

“Decided” by the tax office Andrei Gmyrin organized a business with Russians and relatives of judges

Remember the former head of the Tax Service of Ukraine, Roman Nasirov, who wrapped himself in a blanket, pretending to be seriously ill in...

2 weeks ago

Are raider Astion and businessman Kosyuk bankrupting a well-known agricultural holding through the courts?

The famous raider Vasily Astion deliberately destroys the famous agricultural enterprise Complex Agromars LLC in the interests of the owner...

2 weeks ago

This website uses cookies.