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Howey Test

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cryptocurrency-regulation2 years ago

Binance Challenges SEC Lawsuit, Seeks Dismissal Based on Legal Requirements

Binance and its U.S. affiliate, Binance.US, have argued in a new filing that the U.S. Securities and Exchange Commission (SEC) failed to meet the requirements of the "Howey Test" in its lawsuit against the companies and their founder, Changpeng Zhao. The filing asserts that the SEC did not demonstrate that the exchanges' U.S. customers had investment contracts or that other elements of the Supreme Court case were met. Binance recently settled charges with various U.S. regulatory bodies and filed to dismiss the SEC lawsuit in September, claiming regulatory overreach. The SEC argued that the settlements showed Binance's awareness of operating in the U.S., but Binance countered that securities laws did not apply to the settlements.

via CoinDesk|
#binance#cryptocurrency-regulation#dismissal
cryptocurrency-regulation2 years ago

SEC Urges Rejection of Coinbase's Lawsuit Dismissal Motion

The U.S. Securities and Exchange Commission (SEC) has urged a federal judge to reject Coinbase's attempt to dismiss the securities law violation lawsuit filed against it. The debate centers around the interpretation of the Howey test, a key precedent in securities law. The SEC argues that Coinbase's justification contains "fatal flaws" and that the court must determine whether Coinbase intermediated transactions in "investment contracts" that should be regulated by the SEC. Coinbase contends that crypto trades do not meet the definition of an investment contract, while the SEC maintains that the Howey test should be flexibly and widely interpreted. The SEC also refutes Coinbase's claim that the agency blessed its conduct and emphasizes that going public does not automatically endorse compliance with securities laws.

via CoinDesk|
#coinbase#cryptocurrency-regulation#howey-test
cryptocurrency2 years ago

"Ripple's Hinman Investigation and XRP Price Surge Amidst Crypto Uncertainty"

Ripple's chief legal officer, Stuart Alderoty, is calling for an investigation into former SEC director Bill Hinman's 2018 speech on crypto transactions and the application of the Howey test. Alderoty claims that Hinman "invented factors" to determine what "sufficiently decentralized" means and ignored warnings that the speech contained "made-up analysis with no basis in law." The speech caused confusion when the SEC later sued Ripple Labs for allegedly selling $1.6 billion worth of XRP as an unregistered security.

via Decrypt|
#bill-hinman#cryptocurrency#ethereum
cryptocurrency2 years ago

XRP's Future: SEC Case, IPO Valuation, Lawsuit Predictions, Regulatory Landscape, and Community Reactions.

Google's generative AI platform, Bard, acknowledged the difficulty in predicting the outcome of the Ripple and SEC case but recognized the strength of Ripple's arguments and the significance of a favorable outcome for the crypto industry. Bard highlighted three key factors influencing a potential Ripple win, including the judge's interpretation of the Howey Test, Ripple's argument that XRP is not a security, and the SEC's handling of the case. The SEC presents a strong case, but Ripple's significant successes in the case thus far could secure a victory. The outcome of the case hinges on the judge overseeing the proceedings, and anticipation is building for the unsealing of documents related to Hinman on June 13.

via Finbold - Finance in Bold|
#cryptocurrency#cryptocurrency-industry#howey-test
cryptocurrency2 years ago

Coinbase Fights Back Against SEC's Allegations and Lawsuit.

Coinbase has responded to the SEC's Wells notice, stating that an enforcement action against the crypto exchange would pose "major programmatic risks" to the SEC that would "fail on the merits." The SEC's warning to Coinbase noted that the regulator would allege Coinbase was offering and selling unregistered securities, in violation of federal law. Coinbase argues that proposed charges rely on "flawed and untested" theories involving investment contracts, spot markets, and custody services. Coinbase also issued a point-by-point repudiation of Howey's applicability to the exchange's staking service.

via CNBC|
#coinbase#cryptocurrency#howey-test