XRP News: The U.S. Securities and Exchange Commission (SEC) has received a heavy backlash from digital asset industry leaders over the categorization of tokens. However, in the latest hearing of the LBRY lawsuit, the commission went on to admit that the token itself is not a security.
XRP Lawsuit Is The Key?
Attorney John Deaton, Amicus Curiae in the XRP Lawsuit asserted that the narrative build by the US SEC to call token a security in the industry needs to be stopped. He claimed that the token is nothing more than software code.
He stated that a token is just like any other commodity or asset that can be packaged, marketed, offered, and sold as a security. He further added that the term “investment contract” which is known as security is never about the underlying asset. Meanwhile, it is about the conditions formed around the offer and sale of the underlying asset. Read More XRP News Here…
Deaton brought up the Telegram case where Judge Castel clearly stated that the GRAM token was not the security. It was mentioned that the token was an “alphanumeric sequence”. However, the infamous Hinman Ethereum speech also stated that the digital asset itself is just a code.
Earlier, Coingape reported that Unseal Hinman Speech documents and Email motion are gaining support. Most recently a government watchdog, Empower Oversight has lent its support to the motions filed in the XRP lawsuit.
As per the XRP lawyer, they forced the US SEC to accept in its opposition brief that discased XRP is a computer code.
He further added that no appellate court has ever held the underlying asset subject to an investment contract transaction is itself an investment contract.
However, there is no federal lawsuit finding that states that the subsequent transfer of that asset turns out to be a securities transaction.