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- The U.S. SEC has come under fire, after stating that Ripple (XRP) has no intrinsic value.
- XRP continues to outperform rival altcoins, kicking off the new week with an upsurge in market cap value.
The U.S. The Securities and Exchange Commission (SEC) recently made an assertion that set off the cryptocurrency community, especially Ripple proponents.
The regulatory body has a long history of enacting strict policies on cryptocurrencies. This time, the SEC specifically referred to XRP as an asset with no intrinsic value. The assertion was made in a recent motion to Judge Torres in the Ripple vs SEC lawsuit.
Ripple proponents have collectively pushed back on this narrative, as they acknowledge its harmful impact on the image of the asset and the entire Ripple community.
In a recent post shared to X, formerly twitter, lawyer and Ripple supporter Bill Morgan explained that the SEC’s stance on Ripple seems to be vastly different from its stance on Ethereum.
The post has since sparked a conversation about the XRP’s position in the cryptocurrency market, and notably figures like John E Deaton have responded in defense of the XRP. Deaton, a well-known Ripple supporter, seems to think that the SEC is overlooking the Howey test. The Howey test, created by the Supreme Court, designed to determine what qualifies as an investment contract.
Pointing to the Howey test, Deaton wrote;
Maybe the SEC should read Howey again: “The test is whether the scheme involves an investment of money in a common enterprise with profits to come solely from the efforts of others. If that test is satisfied, it is immaterial whether the enterprise is speculative or non-speculative or whether there is a sale of property with or without intrinsic value.”
Bill Morgan insists that the SEC is purposefully ignoring the Howey test
It appears that the SEC is fully aware of the Howey test and what it encapsulates, as Bill Morgan further stated. He explained that the SEC took note of the test during the motion for Ripple’s summary judgment. Morgan claims that the SEC chose to ignore the facts and proceed to make contradictory statements.
“The SEC acknowledged that in its opposition brief to Ripple’s SJ motion. Yet it couldn’t help itself & repeated in the motion for leave to file an interlocutory appeal that XRP has no intrinsic value. Why? The SEC wants to distinguish digital assets from commodities and assets with intrinsic value for some reason.” Bill Morgan explained.
While the conversation about XRP and the SEC persists, XRP has managed to hold up strong through the chaos. The altcoin has maintained its position as one of the top 10 most valued digital assets by market cap.
The asset has lost more than 80% of its price value over the last 6 years, and the ongoing legal dispute with the SEC has made the XRP’s walk to the top even longer.
However, market players are largely positive about bitcoin’s future. With adoption for Ripple soaring, there is room for XRP to make a full comeback. The asset is trading at a press time price of $0.5158.
