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Ripple Vindicated: US Supreme Court Decision Supports Ripple’s Position
In a recent development, the US Supreme Court decision regarding the Twitter and YouTube case has aligned with Ripple’s argument about the application of the Howey principles. Ripple’s Chief Legal Officer, Stuart Alderoty, expressed his support for the Court’s decision in a tweet on May 19. This article delves into the implications of the Supreme Court’s ruling and examines Ripple’s interpretation of investment contracts under the “Howey Test.”
Background on the Supreme Court Decision
The Supreme Court stated that it would not simply apply the factors from an old case but instead adapt them to current conditions by considering the underlying statute. This aligns with Ripple’s argument that the “Howey Test” should accommodate emerging technologies like cryptocurrency.
Understanding the “Investment Contract”
Ripple’s Chief Legal Officer, Stuart Alderoty, believes that the “Howey Test” and its operative statute encompass the principles of common law. Alderoty argues that an “investment contract” requires a contract for an investment that creates post-sale rights for the purchaser and obligations on the seller.
