Bill Morgan recalled that in the case against Ripple, the SEC hopes to build a prosecution around the classification of XRP as a security. Morgan argues that the SEC case against Ripple is based on the fact that the regulator is trying to replace the true inner content of the asset by determining its possible legal role in the secondary market.
Bill Morgan stated that he fully supports the arguments of Ripple lawyer John Deaton, who strongly disagreed with the SEC’s interpretation of the XRP cryptocurrency as an investment contract.
“The commission interprets the Howey test so broadly that the boundaries of interpretation cannot be defined either in space or in time. In fact, this is tantamount to proving that Ripple offered XRP to the whole world. At the same time, the SEC continues to assert that every secondary sale of XRP from the beginning of time to the end of the world corresponds to all three aspects of Howie.” wrote John Deaton on Twitter.
If the judiciary upholds the SEC’s position on XRP in the secondary market, Morgan said, it would have far-reaching implications for the entire crypto industry. In particular, the SEC will have a free hand to classify other crypto assets like Algorand and DASH as securities.
Earlier, Bill Morgan suggested that the Coinbase exchange would not delist bitcoin and ether even under pressure from regulators, since these cryptocurrencies account for 65% of trading volume.
Source: Bits
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