The first statement by the SEC came after the judge in the lawsuit between Ripple and the SEC declared that XRP tokens sold on exchanges are not securities.
The judge also stated that institutional sales by Ripple violated securities laws.
Here is the SEC's first statement on the matter:
“We are pleased that the court has found that XRP tokens have been offered and sold by Ripple as investment contracts in certain circumstances in violation of securities laws.
The court acknowledged before the SEC that the Howey test governs the securities analysis of cryptocurrencies and rejected Ripple's fabrication test as to what constitutes an investment contract, instead emphasizing that Howey and subsequent lawsuits have ruled that various tangible and intangible assets can be the subject of an investment contract.
The court also rejected Ripple's fair notification argument, stating that the Howey test is clear and that the non-disclosure claim is not a defense for violating securities laws. We will continue to review the decision.”
*Not investment advice.