The SEC's Analysis of Ripple's XRP Sale

Ripple is challenging the SEC's analysis on two fronts. It argues that its sale of XRP does not qualify as an investment contract because no contracts were signed when the transactions took place, and separately that XRP doesn't satisfy the prongs of the Howie test. The SEC has long said that the majority of cryptocurrencies are securities since people invest with the goal of turning a profit. Many projects are in practice sufficiently centralized to meet the definition of a common enterprise.