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Michael Didiuk, a former employee of the United States Securities and Exchange Commission [SEC] he spoke of XRP, stating that cryptocurrency is not a security but rather a currency. He also gave an appropriate justification for his statement.
Didiuk mentioned the Howey test presented by the Supreme Court in 1946, which determines whether a resource is a security based on four factors. The four factors mentioned by the former employee of the SEC were the investment of money, a joint venture, the expectation of profits and the efforts of a third party or promoter who pushed that profit. In his words:
"I do not think the XRP is a security, I think the XRP is a currency. […] Howey test … It's a 4-factor test: investing money in a joint venture with the expectation of profits based on the efforts of others. "
According to Didiuk, if one of these factors is absent from the financial entity, then it is not a security. He applied the same to XRP and also said that the currency will continue to exist and will work without Ripple. So, in this case there may not be a third-party promoter, making XRP a non-security asset.
Steven Diep, a popular member of the cryptocurrency space on Diduik's observation, commented:
"Pay attention to the regulators' reaction, they laugh … To say that XRP is a security seems stupid from the beginning"
Even a Twitter user and a fan of cryptocurrency called Kheysitas said:
"It smells good for the SEC verdict, do not you think so?"
At the beginning of this week, Swell, which is Ripple's annual conference, took place where several great personalities made their presence felt, namely Bill Clinton and Gene Sperling. Here, RippleNet was discussed as the highlighted topic of the meetup where the community talked about ways in which the product can be made more consistent in terms of operations. Onboarding and legal clarity were also discussed under the topic.
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