In a recent filing, the US Securities and Exchange Commission (SEC) disagreed with a request by Ripple and its co-founder Chris Larsen to answer questions about the Howey case agency test to determine the status of XRP.
Only recently, the SEC contradicted Ripple’s request to disclose employees’ crypto holdings to create documentation related to “pre-transaction decisions.”
Controversial Howey test
In August, Ripple and Larsen filed a motion to force the SEC to answer a series of questions after the SEC made “vague and unclear” statements about applying the Howey test to XRP transactions.
The SEC immediately filed an appeal to answer the questions “How the Howey Test Applies to Virtually All Ripple XRP Transactions Over the Past 8 Years” filed by the SEC—shown by James K. Filan, a former federal attorney with the Connecticut District Attorney’s Office.
The SEC filed the lawsuit against Ripple last December, alleging that the company’s offer from XRP was worth more than $ 1.38 billion in unregistered securities.
The SEC’s case focuses on determining whether and why transactions with XRP constitute an “investment contract” and, if applicable, a security that is subject to disclosure and disclosure.
The SEC’s method of determining what security is used is the Howey Test, which states that “an investment contract is when there is an investment in a normal company with a reasonable expectation of a return on investment.” from the efforts of others.”
“The defendants waited until the end of the preliminary investigation, more than seven weeks after receiving the initial interrogation from the SEC, to tell the agency that they found the responses overwhelming.
“Defendants’ argument here is that they are not satisfied with the answers to the questions that arise, mainly due to differences in the way the SEC and Defendants apply applicable law.”
In a September 8 letter to US court judge Sarah Netburn, the SEC stated that it had satisfactorily answered Ripple’s questions, adding that “The SEC is not required to pay a series of interrogations based on the defendant’s misunderstanding.”.
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According to Cryptoslate