A member of the XRP community has shared new evidence that they believe shows the Securities and Exchange Commission (SEC) was dishonest in its claims in the ongoing Ripple lawsuit. The lawsuit centres on whether XRP, a cryptocurrency created by Ripple, is security and should have been registered with the SEC.
The new evidence was shared by the XRP community member on social media and suggests that the SEC was aware of the legal status of XRP as far back as 2012, contradicting its claims that it was unclear whether XRP was security until much later. The evidence consists of emails between SEC officials and third-party individuals discussing XRP’s legal status.
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Community of XRP Shows Evidence That SEC Is Dishonest In The Ongoing Lawsuit
This latest development follows an update shared by Twitter user Leerziet, who claimed that Ripple had filed a motion to compel the SEC to produce documents related to Bitcoin and Ethereum. Ripple believes these documents will show that the SEC was inconsistent in its treatment of cryptocurrencies and did not give clear guidance to the market.
🚨Ain't no judge but damn! How could the @SECGov ever win? They claim in their token framework that the status of development is a relevant factor for the determination of the Securities status, yet in their lawsuit they say the status of development is not relevant at all. 🚨 pic.twitter.com/anaXoDNoAQ
— Mr. Huber🔥🦅🔥 (@Leerzeit) April 23, 2023
In the document, the SEC asserts that a digital asset satisfies the third prong of Howey “if purchasers of a digital asset expect an AP [active participant] to be performing or overseeing tasks that are necessary for the network or digital asset to achieve or retain its intended purpose or functionality.”
However, the Securities and Exchange Commission made a contrary statement in its argument against Ripple. Responding to a question raised by Ripple Chairman Chris Larsen about the exact date the XRP Ledger became fully functional, the securities regulators argued that “whether and when the XRPL became fully functional is irrelevant under Howey.”
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The Ripple lawsuit has been closely watched by the cryptocurrency industry, as the outcome could have far-reaching implications for other cryptocurrencies. Many in the industry believe that the SEC’s approach to regulating cryptocurrencies has been unclear and inconsistent, causing confusion and hindering innovation.
In a similar development, Ashley Prosper, an XRP community member who slammed JPMorgan influenced the Ripple v SEC lawsuit, said Judge Sarah Netburn was correct to describe the regulator as “hypocritical and unfaithful to the law.
Judge Netburn had it so right.
Hypocrital and unfaithful to the law.— Ashley PROSPER (@AshleyPROSPER1) April 23, 2023
The XRP community has been vocal in its support, arguing that XRP is not a security and should not have been subjected to the same regulations as traditional securities. They believe the SEC’s actions have harmed both Ripple and XRP investors.
As the case continues to unfold, the cryptocurrency industry will be watching closely to see how it will impact the regulatory landscape for cryptocurrencies going forward.