XRP news | By the SEC's staff have resulted in some intriguing developments:

The battle over the legality of XRP continues between Ripple, a payment company, and the U.S. Securities and Exchange Commission (SEC). Although the US District Court for the Southern District of New York has not yet rendered a decision in the case, new filings by the SEC's staff have resulted in some intriguing developments.

Attorney’s Claim Could Be A Game-Changer For Ripple’s Future

In the opposition and reply filings that Ripple presented to the court, attorney John Deaton, who is defending XRP investors in the Ripple dispute, has underlined a footnote. According to the footnote, there are "reasonable grounds" to believe that XRP may not fully satisfy the requirements of the Howey Analysis and might not be protected by federal securities law.

The Howey Analysis is a legal test that is used to assess whether an asset is a security. It is based on four criteria: 

(1) the investment of money; 

(2) participation in a common venture; 

(3) the expectation of benefit; 

(4) the reliance solely on the labor of others. If an asset satisfies all four requirements, it is regarded as a security and is governed by federal securities laws.

The SEC has previously claimed that XRP satisfies all four criteria of the Howey Analysis and ought to be treated as a security subject to federal securities law's registration and other obligations. However, the most recent report by the SEC staff raises some potential concerns regarding whether XRP satisfies all requirements.

The Ripple lawsuit's verdict will have a big impact on the cryptocurrency market. If XRP is determined to be a securities, Ripple may be exposed to hefty fines and penalties for failing to register with the SEC. Additionally, it might serve as a model for other cryptocurrencies, which might result in tighter governmental oversight and compliance standards.

According to lawyer John Deaton, there is a chance that the litigation will go in the Ripple and XRP holders' favor. The cryptocurrency market as a whole may suffer if the court rules that XRP does not satisfy all requirements of the Howey Analysis and is not a security.

Ripple’s CLO Cite SEC’s 1976 Ruling As A Legal Defense

Chief Legal Officer of Ripple Stuart Alderoty has emphasized the SEC's 1976 decision on lithographs and their status as securities. Alderoty pointed out that the SEC has previously said that artwork lithographs, even when sold for investment reasons, are not constituted securities if there are no contractual duties from the seller in favor of the customer following the sale.

To put it another way, a work of art is not regarded as a security under federal securities legislation if the seller has no ongoing duties to the purchaser after the sale, such as the responsibility to provide financial returns or other advantages.

The lithograph in question by Andy Warhol is part of a series called "Prince Series," which includes 16 images of the singer Prince. The prints were produced by Andy Warhol in 1984 and sold to Richard Weisman, a collector.

Applying the Howey test, the same legal standard employed in the Warhol Lithograph case, is key to the SEC's claim that XRP qualifies as a security. This decision makes XRP and other comparable assets' regulatory status even clearer. According to Ripple's attorney, it emphasizes how crucial it is to comprehend how various forms of assets are classified legally in the context of investment and securities law.