There was an old letter from the SEC saying that the Howie test is not always applicable to cryptocurrencies

Ripple is a crypto company that conducts cross-border payment services. Over the past couple of years, the company has had problems with the SEC, since the agency believes that XRP is a security. The found letter refutes this.

More about the letter

A Pro-XRP lawyer found an old email mentioning the XRP coin. In it, the SEC indicates that the Howie test cannot be fully applied to the token.

Over the weekend, John Deaton, who is a well-known cryptocurrency lawyer and a fan of the coin, will publish a screenshot of an eolectronic letter from the SEC.

In it, the agency indirectly recognized that the coin could not be a security, since the Howie test could not be applied. It says that the coin is not suitable for all the factors of the test.

Note that the Howie test is a set of rules that defines an asset as a security. However, to do this, it must comply with all the listed items.

Now there is an active discussion in the crypto community about why Ripple's lawyers did not use this letter. After all, in it, the agency itself recognizes that the Howie test cannot be fully applied to the coin.

At the end of 2020, the SEC filed a case against the company with the involvement of senior management regarding a possible violation of the securities Act.

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