It’s been nearly 20 months since the Securities and Exchange Commission (SEC) sued Ripple Labs for selling XRP as unregistered securities. John Deaton, who represents Ripple in the SEC vs. Ripple Labs court case battle, believes there’s major evidence of overreach by the SEC.
In December 2020, the Ripple case was launched by Jay Clayton, then-chairman of the SEC, which is now being led by Gary Gensler. Gary Gensler recently wrote on Twitter that “there’s no reason to treat the crypto market differently from the rest of the capital markets just because it uses a different technology.” John Deaton responded to the tweet by claiming Gensler is expanding the “Howey Test” beyond recognition, in reference to the U.S. Supreme Court case that determines whether a transaction qualifies as an “investment contract.”
