Main navigation

Charles Gasparino Asks 'Serious Question' on XRP's Security Status

Fri, 02/03/2023 - 08:22
article image
Godfrey Benjamin
Gasparino drew on Howey Test to ask serious question about XRP's status as security
Charles Gasparino Asks 'Serious Question' on XRP's Security Status
Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Media personality and FOX Business Senior Correspondent Charles Gasparino has weighed in on the ongoing legal battle between Ripple Labs Inc and the U.S. Securities and Exchange Commission (SEC). Taking to Twitter, Charles posed what he termed a "serious question" about the status of the XRP coin that is under contention as a security between both parties.

Charles pointed out that per the Howey Test, an asset becomes a security when the buyers of an asset have some form of "reasonable expectation of profits to be derived from the efforts of others."

Based on this premise, he asked what profits those who purchased the cryptocurrency from the company’s executives expected to make at the end of the day. In his words:

Per Howey, an asset that is sold becomes security when the purchaser has a 'reasonable expectation of profits to be derived from the efforts of others' What profits were #XRP buyers of @Ripple exec sales expecting from Ripple itself? Serious question as the @SECGov case continues.

The case between the U.S. SEC and the blockchain payments labs has stirred a lot of division among legal experts, but thus far, many believe the odds are skewed to favor Ripple.

Ripple vs. SEC: Plaintiff’s Supporter Wants to Remain Anonymous

Ripple v. SEC: Judgment approaching

The duo of Ripple and SEC are now looking forward to a judgment over the case that has been going on since December 2020. Earlier, many had advocated for an out-of-court settlement, an option that was not acted upon.

Many in the digital currency ecosystem consider this lawsuit a pivotal one for the future of the industry and the regulatory oversight from the SEC. Should this case end in Ripple's favor, it will form a precedent upon which future related cases will be built.

article image
About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.