Berkeley Researcher Says XRP (XRP) is a security and Believes Ripple is committing fraud By non-compliance – XRP News Today

Nicholas Weaver, a researcher and lecturer at the International Computer Science Institute, has offered his opinion on whether XRP is a security. This comes after the recent statements by the former SEC employee deliberating on whether XRP is a security or not.

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XRP (XRP)
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Weaver’s tweets

Weaver believes that XRP is a security, while Ripple, the parent company is committing fraud by not complying with the regulations. He holds a position at UC Berkeley and made this statement on this Twitter account saying,

Let’s walk through the “Howey Test” with XRP (“Ripple”). This is why @SEC_Enforcement needs to come down like a ton of bricks on those behind Ripple the company… XRP is a security, and as such Ripple Inc is committing securities fraud by not following the rules.”

He put the cryptocurrency to the Howey Test as laid out in 1946 by the Supreme Court. This test asks four questions to determine if an asset is a security. They include a common enterprise, an investment of money, and expectation of profits as well as efforts of a third party. He tweeted further:

“#1: “Is it an investment of money?” Hell yeah. People put their money in XRP and literally call it an “investment”. So let’s check #1.”

Weaver continued to post and stated that XRP follows the 2nd rule. The expectation of profit is present for the coin and the third factor, which is the common enterprise, has to exist for the investment of the money. This was also passed by the cryptocurrency. Lastly, the fourth criteria was met.

He concluded his analysis by saying,

In fact, basically any ICO not restricted to accredited investors where there is the quiet part of “yeah, this is for a ‘product’, but you don’t want the product, you can sell the token to someone else” fails the Howey test. Including Ethereum.”

Weaver is not the only one that believes that XRP is a security. Nouriel Roubini also commented on it recently in his tweets, and he tagged XRP as non-compliant. Ripple has not made any statement on this matter.

 


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