SEC v Ripple: Exclusive Interview With Web 3 Attorney, Jonathan Bench
Too Long; Didn't Read
In a recent discussion about the SEC v Ripple case, attorney and web3 legal expert Jonathan Bench provided insights into the background story. The case involves Ripple, a company that developed a token called XRP and contributed 80% of the tokens to Ripple Labs to develop software for managing international payment transactions. Bench considers the SEC's action to be consistent with its mandate of investor protection and market integrity, as XRP appears to be a security token with a centralized effort. He mentions that the Howey Test, used to determine if an investment contract is a security, lacks clear guidelines for decentralized projects like DAOs. Bench praises the Utah DAO Act as forward-looking legislation that addresses the complexities of DAOs and their interaction with the Howey Test. He also notes that the SEC's approach to regulating the crypto industry in the US has harmed the industry, leading some projects to seek offshore jurisdictions with clear regulatory frameworks.