David Schwartz, also known as JoelKatz and longtime CTO of Ripple, is pushing back hard against what he calls an attempt to rewrite the history of the SEC vs. Ripple lawsuit.
In a recent post, Schwartz argued that the SEC didnāt just target specific sales ā it treated XRP itself as a security across the board.
The SECās Core Argument
According to Schwartz, the SECās complaint repeatedly referred to XRP as the security. Their press release stated that Ripple āsold XRP coinsā without a registration statement. The agency also described Ripple executives Chris Larsen and Brad Garlinghouse as āsecurity holders.ā
Sponsored
The key point: The SEC applied a single Howey analysis to all Rippleās sales and offers of XRP ā including blind sales on exchanges. They rejected the idea that different types of sales needed separate legal scrutiny.
Gary Genslerās Own Words
David āJoelKatzā Schwartz pointed to public statements from then-SEC Chair Gary Gensler as the clearest evidence. In speeches and comments, Gensler and the Commission framed the case around XRP itself, not just institutional or direct sales.
This broad approach was central to the SECās strategy. It wasnāt a narrow claim about certain buyers ā it was a blanket assertion that XRP transactions by Ripple violated securities laws.
Howey Test Back In Focus
The SECās case heavily relied on the Howey Test, the classic legal framework used to determine whether something qualifies as an investment contract (and thus a security). Under Howey, an asset is a security if there is an investment of money in a common enterprise with a reasonable expectation of profits derived from the efforts of others.
The SEC argued that Rippleās sales of XRP met all these prongs ā treating the token itself as the security, not just the way it was sold. This single, sweeping Howey analysis was applied to Rippleās entire distribution strategy, from institutional deals to open-market sales, which became a major point of contention throughout the litigation.
Why This Still Matters Now
The debate has resurfaced as people revisit the case outcome and ongoing discussions around crypto regulation. Schwartzās post serves as a direct rebuttal to anyone trying to downplay the SECās original position or claim they were only going after specific distributions.
For XRP holders and the broader crypto community, David Schwartzās reminder reinforces a key narrative: The SEC took an aggressive & expansive view of what constituted a security: one that went far beyond the court ruling. The fight over how the case is remembered continues.
Discover DailyCoinās popular crypto news right now:
Stellar Grabs a Slice of $60B Pie: $2.50 Coming For XLM?
The SwiftāXRP Tie: Leaked Slide Puts Ripple In The Middle
People Also Ask:
David Schwartz, known online as JoelKatz, is the former CTO of Ripple and one of the original architects of the XRP Ledger. Heās a key voice in the XRP community and often explains technical and legal topics.
He pushed back against people trying to rewrite history of the SEC vs Ripple lawsuit. He reminded everyone that the SEC originally treated XRP itself as a security ā not just certain sales.
The SEC said Ripple sold XRP without registering it as a security. They used one single Howey Test analysis that applied to all XRP sales (including sales on exchanges), and even called Chris Larsen and Brad Garlinghouse āsecurity holders.ā
A simple legal test used to decide if something is an āinvestment contractā (a type of security). It checks if people invested money expecting profits from someone elseās efforts.