It appears that since Gary Gensler assumed the role of acting SEC chairman, the organization has been attempting to take over regulation of the bitcoin sector. John Deaton, the inventor of CryptoLaw, at least thinks so.
His claim is supported by the fact that the Supreme Court recognized the Howey test as a valid approach for deciding whether an investment qualifies as a security in 1946. He claims that because this foundation has not changed in 75 years, the CFTC should be in charge of overseeing cryptocurrencies.
However, it is challenging to apply Howey’s criteria to cryptocurrencies, as the SEC’s legal action against Ripple since 2020 all too clearly demonstrates. Congress has not yet seen the need to offer any more clarification. Deaton notes that the SEC chairman simultaneously uses this murky area to increase the scope of his authority.
He contends that Howey’s four criteria can be freely construed in accordance with one’s good intentions, whereas Gensler attempts to establish regulation by enacting actions.
Ripple too has to cope with this issue. The SEC is criticizing the firm because the sale of XRP satisfies Howey’s requirements, making the token an unregistered security. But if it were to be as obviously true as it ought to be, the trial would have already concluded.
Deaton is confident that the stakes are high for the cryptocurrency sector as a whole as well as for Ripple specifically. Because if Ripple Labs is reported to the SEC, that precedent will be established for the SEC to employ with other cryptocurrencies.
Ripple price technical benchmarks
XRP/USD is currently losing -2.68% to a price of $0.3341. The drop below the 38.2 percent Fibo retracement was followed by a two-day rally, which, however, has already ended. The cryptocurrency is once again heading towards the support of the 23.6 percent Fibo retracement of $0.3219.
If it does not resist the downward pressure, we should expect a test of the psychological threshold of $0.30.
Only a move back above the 38.2% Fibo retracement will increase the chances of a move higher towards the 50% Fibo retracement of $0.3604.
