The US Congressman said there was no chance of Ripple taking on the US Securities and Exchange Commission in the ongoing legal battle.
US Congressman Brad Sherman said in a recent FOX Business interview that he believes the SEC will win the legal battle with Ripple because the Ripple network’s native cryptocurrency, XRP, is a security.
In December 2020, the SEC filed a high-profile lawsuit against Ripple, alleging that XRP is an unregistered security. The SEC has accused the company and two executives of raising at least $1.3 billion through the sale of XRP.
As of this writing, XRP is trading at $0.35, up 8.5% over the past seven days.
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ripple vs. SEC case to drag on
The court has not yet evaluated the token’s regulatory classification, as the issue is not expected to be decided until next year.
XRP is a digital asset that runs on the XRP Ledger, a blockchain developed by Jed McCaleb, David Schwartz, and Arthur Britto. McCaleb and Britto eventually founded Ripple, using XRP to conduct network transactions.
Sherman is known as a fierce adversary of cryptocurrencies. In 2018, he called for a complete ban on cryptocurrencies.
Could you please fact-check on aisle 2? Congressman Sherman, the United States does not consider XRP to be a security (indeed, no country has decided). It’s more than a concern when elected officials don’t understand that the filing of a lawsuit by the SEC alone won’t decide anything. https://t.co/Py6jWIl2Gf
— Stuart Alderoty (@s_alderoty) July 19, 2022
He recently asked the SEC to restrict XRP trading on US-based cryptocurrency exchanges. A congressman thumped the committee, claiming it failed to pursue a cryptocurrency exchange backing the token’s trading.
Ripple’s general counsel, Stuart Alderoty, disputed that simply filing a lawsuit with a Democratic representative from California’s 30th congressional district would not reveal whether the token is a security. I was.
When I asked Senator Sherman why, $XRP He explained that XRP investors are dependent “for the reasons stated in the SEC’s position.” @ Ripple efforts to raise prices. He then said the proof he was right came from crypto exchanges https://t.co/D1fuwsIlZZ
— Eleanor Terrett (@EleanorTerrett) July 20, 2022
Attorney Jeremy Hogan was surprised by Sherman’s conclusion that XRP is a security, given the court’s ruling that plaintiffs and defendants cannot exchange evidence with third parties.
FOX Business reporter Eleanor Tellett responded to Hogan’s tweet by saying lawmakers believe XRP is a security on “evidence articulated in the SEC’s view.”
XRP total market cap at $16.9 billion on the daily chart | Source: TradingView.com
Congressman says SEC only goes after ‘little fish’
“If XRP is a security…why aren’t these cryptocurrency exchanges breaking the law?” Sherman asked Gurbir Grewal, head of the SEC division.
Defending the SEC, Grewal said the commission pursued Delaware-based exchange Poloniex in 2021. “It’s easier to pursue small fish than big fish,” Sherman replied.
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Popular cryptocurrency legal counsel John Deaton has weighed in on the topic, stating that US regulators “will not make security decisions. Only federal district courts can.” increase.
Brad Garlinghouse, CEO of Ripple, also commented on Sherman’s remarks. He said the legislator’s remarks indicated he was seeking to pursue a political agenda.
The SEC vs. Ripple case is a tricky one. Both parties appear to have had some degree of procedural success, at least in their own eyes.
I’m stuck for the time being.
Featured image from Photography Informers, chart from TradingView.com