Demelza Hays, who is among the Forbes 30 under 30 Europe, runs Crypto Research Report, has agreed to answer our questions on XRP.
In the Q&A, Demelza maintained her stance that XRP is indeed a security. She said "the reason XRP is a security is because of the Howey Test used by the Securities Exchange Commission in the US. One criterion of the Howey Test is that a third party is responsible for generating profits on the investment. In XRP’s case, the third party is Ripple Labs Inc. because they are the only group driving the adoption of XRP. This is the main reason why Ripple Labs Inc. is now claiming that they did not make XRP."
An updated complaint was lodged in United States District Court, Northern District of California, Oakland Division, referring to the SEC guidance on what constitutes a security.
This aligns with stance of people like Demelza.
The complaint also alludes to California’s advertising laws, claiming that the investors were ‘misled.’ In our opinion, nothing will come out of these appeals, probably a hefty fine to get things wrapped up while the company moves on to print another $300 Million in a month.
You can read the Crypto Research Report here.
Read the full article with Q&A with Demelza here.
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