As you already know by now, Ripple has been making a lot of headlines recently due to the issues that the San Francisco-based firm has with the US SEC.
Now, it’s been revealed that TechCrunch founder Michael Arrington just addressed the U.S. Securities and Exchange Commission’s (SEC) case against Ripple.
Addressing the Howey test
In a new interview with Layah Heilpern, Arrington talked about the Howey test, which was established in a Supreme Court case and determines whether certain transactions qualify as investment contracts subject to securities laws.
The SEC said that an investment contract exists when there is an investment of money in a common enterprise with a “reasonable expectation” that profits will be derived from the efforts of others, according to the latest reports coming from the Daily Hodl.
Arrington said that he believes the test is outdated and irrelevant in the digital age.
“Whether or not something is a security, even asking that question, just plays into the hands of the SEC. They want everybody using their definitions to decide what is and isn’t a security,” he said.
He continued and said that “We buy cryptocurrencies with the hope of making money when they’re denominated in dollars. We do that because we don’t believe in dollars anymore. Is that a security? Maybe, I don’t know. It depends because it’s not just about, ‘Is it a security?’ and then the conversation is over. It’s, ‘Is it a security?’ and then if it is, which is an entirely legal definition, then the SEC can really put the hurt on you.”
Check out the video above in order to learn more details about what he had to say.
Also, make sure to check out the complete notes in the original article by the Daily Hodl.
In other Ripple-related news, it’s been revealed that the members of Ripple’s senior management team are revealing a new set of crypto predictions for the year 2021.