Will the SEC buy the “no joint venture” claim of the XRP holders?
The Securities and Exchange Commission [SEC] has done its best to prove that XRP is an unregistered security, while having Ripple and its leaders serve for its alleged misdeeds. However, in doing so, the SEC, according to many observers, failed to provide crucial evidence questioning the usefulness of XRP.
In fact, according to the SEC, the only use of XRP is to be a contract to invest in Ripple, with the holders of the asset depending on Ripple for a return on their holdings. The lawsuit in question also seeks to ban the registration of XRP as a security and to prevent Ripple executives from participating in the market.
XRP and its utility
Although many newcomers and some old ones have been to space with the intention of making money, many participants have found investment value in crypto not only as an investment contract, but also as a potential future to replace traditional financing systems.
Even though the SEC says the holders depended on Ripple to increase the value of XRP, many others say they did not hear about the company before the lawsuit or saw XRP as a contract to invest in a company. Thus, it can be argued that the SEC’s assertions that each holder of XRP has engaged in a “joint venture” with Ripple does not meet the criteria of a fact.
When it comes to the usefulness of XRP, the asset has found major use to facilitate cross-border payments. Ripple’s on-demand liquidity [ODL] The solution uses XRP as an intermediate currency to move fiat through established corridors around the world. John Deaton of Deaton Law Firm and CryptoLaw website in his latest blog added,
“The open source nature of XRP allows users around the world to use the token to pay for goods and services without any connection or dependency on Ripple. According to Cryptwerk, more than 1,300 companies currently accept XRP payment in all industries, from business services to tourism and travel.
Here it should be noted that Deaton also filed a motion to intervene in Ripple v. SEC on behalf of the holders of XRP, an intervention that means they were not in a “joint venture” with Ripple, despite claims by the SEC.
The SEC’s claims that XRP is just an investment deal for Ripple don’t hold water. Even though many XRP critics do not view the asset with much use, the XRP community has rallied to prove otherwise. It could also be necessary since the incumbents are the only ones currently suffering from it. They could lose a lot if the SEC wins.
Currently, XRP has been declared a currency by financial regulators in Japan, Singapore, United Kingdom, Switzerland, and United Arab Emirates. As the United States continues to fight for its legal status, it may take some time to keep up with the changing global regulatory landscape.