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Is XRP A Security? Here’s How the SEC Intends To Prove It as Highlighted By Attorney Bill Morgan

The United States Securities and Exchange Commission (SEC) looks hell-bent on proving a point in its legal battle against the Ripple blockchain and the XRP community. Recall that the SEC filed a lawsuit against Ripple in 2020, alleging that XRP sold out without prior registration of the tokens as a security.

Latest Update On The Legal Tussle Between SEC and Ripple

In the latest development, the U.S. SEC has revealed its finalized plan to prove XRP as a security. Pro-crypto lawyer Bill Morgan disclosed the SEC’s intended plan via a tweet on his official Twitter handle. Findings from Morgan’s tweet explain how the SEC aims to lengthen the Howey test to protect crypto since the court plans to make the test flexible.

Read Also: Can SEC or Judge Compel Ripple to Burn Its Billions of XRP in Escrow? Former Ripple Director Has an Answer

Morgan added that the SEC hopes to expand the test to obscure crypto by an extensive view of an ordinary enterprise, initiating the regulator’s priority on “common” while avoiding the word “enterprise.”

Morgan noted that the test expansion strategy has made it highly unlikely to identify the common enterprise in the legal face-off involving SEC and XRP owners.

In addition, Morgan added that SEC would not hesitate to switch to the fungible argument if its argument does not suffice.

Morgan also shared some proofs that demonstrate the SEC argument; “all units of XRP are fungible with each other,” and their prices move concurrently. In a new development, Ripple’s legal team reportedly opposed the SEC’s fungible claim in its opposed motion for a summary verdict by utilizing gold as a model.

Read Also: Ripple CEO Brad Garlinghouse Predicts New End Date for XRP Lawsuit: Details

What Does This Latest Update Means For The Crypto Sphere?

Morgan hinted that should Judge Analisa Torres allow the SEC to get away with its proposed scheme of equating the unified industry to a common interest, the securities regulator will use the same argument against other crypto projects, which may indicate bad news for the crypto space.

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Chinedu Agbakwusi
Chinedu Agbakwusi
Chinedu Agbakwusi is a medical student at the prestigious Nnamdi Azikiwe University with sound knowledge of the crypto space. I am here to be a reliable plug for well-researched crypto content ranging from crypto news to market analyses and blockchain inventions.
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