Former SEC Employee Michael Didiuk Says Ripple’s Coin XRP is a Currency, NOT a Security
Michael Didiuk – XRP is a Currency, NOT a Security
Michael Didiuk believes the Ripple (XRP) is a currency, rather than a security. Didiuk, who previously worked with the SEC, gave an apt justification of his argument.
Michael based his reasoning on the Howey test that was established by the Supreme Court in 1946. The Howey test is a criterion that lists the factors needed for an asset to be considered a security. The factors include the investment of money, a common enterprise, expectations of gains, and the efforts of a third-party influencing the profits. In this regard, Michael said XRP is not a security because it does not bear all of the factors mentioned above.
According to Michael, the existence of XRP is not entirely dependent on Ripple. This means that the coin does not need a third-party promoter, meaning that it does not meet all the requirements of the Howey test. Therefore, it is a non-security asset.
Generally, the crypto community seemed to agree with the statements made by Didiuk. Steven Diep, a popular crypto hobbyist, mentioned that he is eagerly awaiting the reaction of regulatory authorities who have previously maintained that XRP is a security. On the other hand, a Twitter user stated that Michael’s position is an indicator that the SEC will deliver a favorable decision regarding this matter.
The recently concluded Swell blockchain convention was attended by prominent people such as Bill Clinton and Gene Sperling. The main agenda of the meeting was establishing ways of improving the consistency of Ripplenet. In addition, the delegates also discussed the onboarding and regulation of the Ripplenet solution.