XRP comment from the famous professor!
The securities lawsuit against Ripple has tied XRP investors . Ripple's accusation that you have been selling securities, ie XRP, at regular intervals since 2013 was brought to court last week. The fact that SEC, one of the world's most prestigious regulators, is against the blockchain giant makes the situation difficult.
Ripple and XRP Briefly Taken
The SEC charges the CEO and founder of both Ripple and Ripple with $ 1.2 billion in the case. If Ripple loses this big case and XRP is declared a security, it may no longer be possible to buy and sell XRP from exchanges, or the value of XRP may decline to unseen levels.
Ripple CEO Brad Garlinghouse said in a statement on the subject that Ripple was involved in a long war and that nothing is certain until the war is over. One of the famous law professors of the USA explained his comments on the case and revealed how this could result.
XRP and Ripple Interpretation from Law Professor
#Carol #Goforth, a professor at the University of Arkansas Law School, gave sad news to Ripple investors in her current statement. Goforth thinks Ripple's hand is pretty weak here. Goforth drew attention to an exemplary case, stating that the case statement prepared by the SEC has a very detailed and evidential structure.
Highlighting the Supreme Court decision in 1946 , Goforth stated that according to the Howey test, XRP can fit the definition of a security. According to the professor, most of the XRP buyers can understand that they have purchased an asset in accordance with the security definition specified in the decision of the case regarding the Howey test.
Precedent Case Does Not Give Hope
In the decisions of the case in question, among the assets that can be considered as securities according to the Howey test, there is the expression "investing in a joint institution with a cash or monetary value with the expectation of making a profit from the efforts of others or from other people".
Ripple has earned $ 1.38 billion from XRP sales to date, and at this point it seems pretty clear that Ripple is gaining value over the XRPs it sells. In addition, it is known that investors do not have any restrictions on the XRP they can buy. The fact that the wealth of all investors decreases and increases with the value of XRP also increases the possibility of this being a security.
#Ripple's hand is very weak at this point, and the XRP price may continue to be affected, according to #Professor #Goforth.