A former employee of the US Securities and Exchange Commission (SEC), Michael Didiuk has spoken about XRP and stated that the digital currency is a currency,

a security. He has also justified why he said this.

Didiuk has mentioned the Howey test laid out in 1946 by the Supreme Court determines whether an asset is a security based on the four factors. The four factors that Didiuk includes are an expectation of profits, investment of money, a common enterprise and the effort of a promoter o a third party which is pushing that profit.

“I don’t think XRP is a security, I think XRP is a currency. The reason why is […] Howey test… It’s a 4-factor test – Investment of money in a common enterprise with the expectation of profits based on the efforts of others.”

According to the ex-SEC employee, if any of these factors aren’t included from the financial entity, then it isn’t classed a security. He applied the same ruling to XRP and went on to say that the con will continue to exist and operate without Ripple. Therefore, a promoter or third party in such a case can make XRP a non-security asset.

A member of the digital currency space, Steven Diep commented on Diduik statement saying:

“Pay attention to the reaction of the regulators, they laugh. Claiming XRP being a security sounds stupid from the get go”

A Twitter user by the name of Kheysitas also commented saying

“Smells good for the SEC verdict, don't you think so?”

The annual Swell conference by Ripple took place this week where Ripple brought in multiple celebrity personalities such as Gene Sperling and ex-president Bill Clinton. One of the most focal points was RippleNet which was a highlighted topic at the conference. The community discussed ways that the RippleNet would be made more consistent in terms of operations Onboarding and legal clarity were also talked about at the conference under the subject.

What are your thoughts? Should XRP just be classed a currency and not a security? Let us know what you think in the comments down below!

Reference:

AMB Crypto/span>