Could the SEC vs Ripple case replace the Hawaii trial? The founder of Cardano suggests
The SEC filed a formal appeal against Ripple following a historic decision on August 7, in which Ripple was ordered to pay $125 million in civil penalties, although the regulator had requested $2 billion. The premise is that the district court's decision is contrary to long-standing Supreme Court precedents and collateral rules.
Ripple's CLO, Stuart Alderoty, expressed his displeasure with the SEC's decision. He called the lawsuit “unreasonable” and “wrong” from the beginning, and the court cited the SEC's previous inquiry that Ripple acted recklessly and that there were no allegations of fraud, victimization or bankruptcy.
In a response to Alderotti's comments, Cardano founder Charles Hoskinson suggested that the ongoing Ripple case could potentially replace the Hawaii test, a legal test to determine whether certain transactions qualify as investment contracts under US securities laws.
Although it is a kind of joke from Hoskinson, but considering that Howie was prepared in 1946, when the founders of XRP and Ripple were not even involved in the project, and the issue of Ripple has become an important point for many in the mystery. market, may not be far from reality.
Many in the industry believe this case is a critical moment to clarify the rules surrounding digital assets, and the outcome could set new standards in securities law regarding crypto.
