According to Deaton, the SEC’s claims that XRP is a security are based on the Howey test but this test lacks a simple definition and it is not fitted for the cryptocurrency industry making its use a daunting task.
During the famous lawsuit, begun in December 2020, Deaton noted that the expert tried to define, under the provisions of the Howey test, the XRPCommunity as a sort of “joint venture” .
The Lawyer noted at the same time that nobody among the XRP holders has been interviewed.