# Ripple CTO Criticizes SEC's Stance on XRP Lawsuit David Schwartz emphasizes SEC's view of XRP as a security. - **Source:** [DailyCoin](https://brifing.si/source/3e9b0f85-cb2f-40ee-ba61-db9410cf0937) - **Published:** 2026-07-15 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/c15481e3-4b02-4706-88f6-d41c61993943 ## SEC's View on XRP Former Ripple CTO David Schwartz highlighted that the SEC treated XRP as a security and evaluated all sales within this framework. Schwartz pointed out that the SEC referred to XRP itself as a security in press releases and the lawsuit. ## Gary Gensler's Statements Schwartz drew attention to statements made by former SEC Chair Gary Gensler. Gensler viewed XRP itself as a security, and this approach played a central role in the case. ## Role of the Howey Test The SEC used the Howey Test to determine whether XRP was a security. The test requires investors to expect profits from the efforts of others for an asset to be classified as a security. ## Schwartz's Objections Schwartz objected to the SEC's evaluation of all XRP sales under a single Howey analysis. He argued that sales on exchanges required separate legal scrutiny. ## Crypto Community's Reaction XRP investors and the crypto community criticize the SEC's broad approach. Schwartz's remarks remind everyone not to downplay the SEC's original position. ## Future of Regulation Schwartz's emphasis highlights the uncertainty around classifying crypto assets as securities. This debate could play a critical role in shaping future regulations in the industry. ## Sources covering this story - https://dailycoin.com/ripples-david-schwartz-pushes-back-on-sec-revision/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._