Ripple says SEC failed to prove XRP sales were investment contracts

time:2022-12-04 11:28 source:Internet

Ripple Labs says the SEC has failed to prove that the sales of XRP were investment contracts.The company stated this in a motion for summary judgment, citing the Howey test, which is often used by the SEC.The Howey test, developed by the U.S. Supreme Court to determine whether a transaction is considered an “investment contract.”“The SEC has not met its burden with respect to each of the three elements of the Howey test. On the first point, the SEC admits that the billions of units of XRP distributed by Defendants have nothing to do with investing money at all. Not even for transactions involving the exchange of money. Nor has the SEC been able to prove that the buyers invested that money in a common enterprise, as required by the Howey test, rather than simply buying an asset. As to the last point, expectation of return, the SEC cannot overcome two fundamental flaws. First, without actual commitments made by the promoter, there can be no reasonable expectation of return. “The SEC claims that Defendants made ‘promises,’ but this is an empty assertion that is not true,” the company stated.
Blockchain Quotes
  • {{items}}