The issue between SEC and Ripple started in December 2020. It is all because of the initiation of an unregistered securities offering in the united states.
Since then Ripple has never conceded to SEC, it has been taking its stand over the comment of the SEC, tagging the Ripple native token, XRP “a security”. Despite the recalcitrance mindset of Ripple, US-based exchanges still discontinue their support for the Ripple token.
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A few hours, the Ripple executives reacted to the comments made on Tuesday by Brad Sherman, D-California, where he said the SEC should still go after the crypto exchanges transacting the Ripple token, XRP.
Sherman, who is the Chair of a Congressional subcommittee focused on the SEC’s enforcement division, said in an oversight hearing on Tuesday:
“The division has determined that XRP is a security and is going after XRP but, for reasons that I’ll bring up in question, has not gone after the exchanges where tens of thousands of illegal securities transactions were occurring.”
He added: “You know [XRP] is security. That means they were illegally operating a securities exchange.”
One of Ripple’s Executives and General Counsel, Stuart Alderoty reacted to Sherman’s comment;
He stated that only the court can tag the token as a security, he quickly added that they should wait till the court bring out its decision on the case.
“When elected officials don’t understand that the mere filing of a case by the SEC doesn’t determine anything…it’s more than concerning,” Attorney Alderoty added.
Ripple’s General Counsel described Rep. Sherman’s comments as a pernicious effect of the SEC’s regulation by enforcement approach – a tactic that has been heavily slammed by the cryptocurrency community.
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Following Stuart Alderoty’s comment, the Ripple CEO, Bradley Garlinghouse, said Rep. Sherman is “opting to advance a political agenda over sound policy and ignoring what the law says.”
He added that he believes that Sherman is an intelligent legal person provided that he “was magna cum laude at Harvard Law.”
SEC Requests The Removal Of The Amici Status On XRP Holders
Another motion filed by SEC said that the court should refute the amici curiae status which was gotten by Ripple via the attempt of a group of XRP holders led by the attorney John Deaton in 2021 March.
The amici status allows the XRP holders to file “friends of the court” briefs.
Surprisingly, the case between Ripple and SEC started and since then, one case has been leading to another. Before people hope there should be a settlement soon. It was previously stated by Stuart Alderoty that the case would probably end by 2023.
[…] Read Also: Ripple Executives Reacted To Rep. Sherman’s comments And SEC Requests The Removal Of Amici Status … […]