<p>As the <a href="https://finbold.com/ripple-v-sec-court-case-update-as-of-march-27-2023/" rel="noopener noreferrer nofollow">courtroom battle</a> between <a href="https://finbold.com/topic/ripple/" rel="noopener noreferrer nofollow">Ripple</a> and the United States Securities and Exchange Commission (<a href="https://finbold.com/topic/sec/" rel="noopener noreferrer nofollow">SEC</a>) continues to grab the attention of the <a href="https://finbold.com/guides/cryptocurrency/" rel="noopener noreferrer nofollow">crypto</a> community, as well as the world, a <a href="https://finbold.com/guide/corporate-lawyer-salary/" rel="noopener noreferrer nofollow">legal expert</a> and amicus curiae for the <a href="https://finbold.com/topic/blockchain/" rel="noopener noreferrer nofollow">blockchain</a> company, John E. Deaton, shared an explanation of one of the most important legal terms referring to the case, as well as his views on the ruling deadline.</p><p>Indeed, Deaton offered a detailed interpretation of securities and the ‘<a href="https://finbold.com/guides/investing/" rel="noopener noreferrer nofollow">investment</a> contract,’ which he called “one of the most misunderstood legal terms in the law,” and the Howey Test, “the most misapplied legal test or doctrine on social media,” as well as their connection to the current legal standoff as he stated in a <a href="https://twitter.com/JohnEDeaton1/status/1642389473521434624" rel="noopener noreferrer nofollow">Twitter thread</a> published on April 2.</p><h2 id="header-0">On securities and investment contracts</h2><p>As he explained, sharing the definition of ‘security’ from the 1933 Securities Act, a “digital asset is not listed” and “software code is not listed,” also referring to the cases of the now-abandoned <a href="https://www.sec.gov/news/press-release/2020-146" rel="noopener noreferrer nofollow">Telegram’s token GRAM</a>, <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.516941/gov.uscourts.nysd.516941.90.0.pdf" rel="noopener noreferrer nofollow">Kik Interactive’s token</a>, as well as the decentralized video-sharing platform <a href="https://twitter.com/CryptoLawUS/status/1620195036309905408" rel="noopener noreferrer nofollow">LBRY’s offerings of LBC</a> to drive his point home.</p><p>Furthermore, he said:</p><blockquote> “And the Supreme Court in the Howey case in 1946 defined what constitutes an investment contract. A digital asset or <a href="https://finbold.com/cryptocurrencies/" rel="noopener noreferrer nofollow">cryptocurrency</a> (software code), STANDING ALONE, is NOT a security. It can be marketed, packaged, offered and/or sold as an investment contract aka a security.”
</blockquote><p>As he added, “when dealing with an investment contract, there hasn’t been a single case in U.S. history where the secondary sale of that asset was also found to be a security. NEVER.”</p><blockquote> “Every Altcoin arguably starts out as a security when it’s first distributed, ICO or not. When <a href="https://finbold.com/guide/satoshi-nakamoto/" rel="noopener noreferrer nofollow">Satoshi</a> was the only miner of <a href="https://finbold.com/topic/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> (or one of a few) and had he offered 100K <a href="https://finbold.com/cryptocurrency/bitcoin/" rel="noopener noreferrer nofollow">BTC</a> for sale for $100K USD, it would have been an unregistered securities offering.”
</blockquote><h2 id="header-1">Court ruling deadline</h2><p>Earlier, discussing the possibility that Judge Analisa Torres would make a summary judgment ruling soon, Deaton said that the deadline for her decision could range from hours to months and that, based on her earlier cases, two months following the Daubert/experts’ decision could be the waiting time, as he said in a <a href="https://twitter.com/JohnEDeaton1/status/1641886845410725890" rel="noopener noreferrer nofollow">tweet</a> on March 31.</p><blockquote> “There is no deadline of today for her to rule. The decision could come out within the next hour, or it could take another 30-60 days. Based on previous cases, Judge Torres has issued her ruling on summary judgment within a couple of months of her Daubert/Experts’ decision.”
</blockquote><p>Considering that, as <a href="https://finbold.com/" rel="noopener noreferrer nofollow">Finbold</a> earlier reported, the Judge issued her <a href="https://finbold.com/ripple-v-sec-judge-rules-on-expert-testimony-motions-heres-who-benefits/" rel="noopener noreferrer nofollow">ruling</a> on both parties’ Daubert motions to preclude expert witnesses’ testimony on March 6, 2023, this means that the <a href="https://finbold.com/category/cryptocurrency-news/" rel="noopener noreferrer nofollow">crypto sector</a> could wait at least another month for the Ripple v. SEC lawsuit to end.</p><h2 id="header-2">‘Ripple’ effect of the case</h2><p>As a reminder, pro-Ripple lawyers have voiced their opinion that the above decision could prove disastrous for the <a href="https://finbold.com/guides/finance/" rel="noopener noreferrer nofollow">finance</a> watchdog’s summary judgment motion, singling out the exclusion of one specific witness, who was supposed to testify on why people bought the <a href="https://finbold.com/cryptocurrency/xrp/" rel="noopener noreferrer nofollow">XRP token</a>, as ‘<a href="https://finbold.com/ripple-scores-major-win-against-sec-with-fatal-exclusion-of-expert-testimony/" rel="noopener noreferrer nofollow">fatal</a>’ to the SEC.</p><p>Meanwhile, the outcome of the case is predicted to have a major impact on the price of <a href="https://finbold.com/guide/how-to-buy-ripple-xrp/" rel="noopener noreferrer nofollow">XRP</a>. The token recently displayed the <a href="https://finbold.com/coincidence-xrp-dives-after-jim-cramers-comments-on-the-sec-case/" rel="noopener noreferrer nofollow">opposite response</a> to TV personality Jim Cramer seeming to voice a belief that the Securities and Exchange Commission would lose the lawsuit after all.</p><p>As things stand, XRP is currently changing hands at the price of $0.52, recording an increase of 0.28% on the day, as well as gaining 1515% over the previous week, adding up to the 36.69% advance on its monthly chart, as per data retrieved on April 3.</p><p><strong>Read more cryptocurrency news on <a href="https://finbold.com/category/cryptocurrency-news/?utm_source=CMC&amp;utm_medium=social&amp;utm_campaign=CMC&amp;utm_content=long" rel="noopener noreferrer nofollow">Finbold.com</a>.</strong></p>

Ripple v. SEC court case update as of April 3, 2023

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