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XRP, Securities, and the Howey Test

parttimeeconon

Published: 31 Dec 2020 › Updated: 31 Dec 2020XRP, Securities, and the Howey Test

XRP, Securities, and the Howey Test


By now, almost everyone has heard of the SEC’s claim accusing Ripple (XRP) of running an unregistered securities offering. In the wake of this announcement, many exchanges have considered dropping support for XRP and the price crashed over 31% on Tuesday alone. In this post, I want to provide a broad overview of how the government determines what cryptocurrencies are securities and why this matters. Not financial/legal advice


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