Home > News > BitCoin > Ripple Will Lose Court Battle Against SEC, Anti-Crypto US Congressman Says

Ripple Will Lose Court Battle Against SEC, Anti-Crypto US Congressman Says

  • July 21, 2022
  • Posted by: admin
  • Category: BitCoin, Blockchain, Cryptocurrency, Investments
No Comments

Ripple doesn’t stand a chance against the Securities and Exchange Commission in its ongoing court battle, this US congressman says.

U.S. Representative Brad Sherman stated in a recent FOX Business interview that he believes the SEC would prevail in its legal fight against Ripple because XRP, the native cryptocurrency on the Ripple network, is a security.

In December 2020, the SEC filed a high-profile lawsuit against Ripple, alleging that XRP is an unregistered security. The SEC accused the company and two executives of collecting at least $1,3 billion through the sale of XRP.

As of this writing, XRP is trading at $0.35, up 8.5% in the last seven days, data from Coingecko show, Thursday.

Suggested Reading | Dubai Crown Prince Plans To Provide ‘Virtual Jobs’ To 40,000 People

Ripple Vs. SEC Case To Drag On

The court has not yet evaluated the token’s regulatory classification, as the matter is not scheduled to be decided until the following year.

XRP is a digital asset that operates on the XRP Ledger, a blockchain developed by Jed McCaleb, David Schwartz, and Arthur Britto. McCaleb and Britto would eventually form Ripple and use XRP to conduct network transactions.

Sherman is recognized for being a ferocious adversary of cryptocurrencies. In 2018, he pushed for a complete ban on cryptocurrencies.

 

He recently asked the SEC to restrict XRP trading on US-based cryptocurrency exchanges. The congressman even took a swipe at the commission , claiming that it has failed to pursue cryptocurrency exchanges that backed the token’s trade.

Ripple’s general counsel, Stuart Alderoty, disputed with the Democratic representative for California’s 30th congressional district that the mere filing of the case does not reveal whether or not the token is a security.

 

For his part, attorney Jeremy Hogan was astounded by Sherman’s conclusion that XRP is a security, given the court’s ruling that the plaintiff and the defendant cannot communicate evidence with third parties.

FOX Business reporter Eleanor Terrett responded to Hogan’s tweet by stating that the congressman is certain that XRP is a security due to “the grounds 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 ‘Small Fish’

“If XRP is a security… why are these crypto exchanges not in violation of the law?”   Sherman questioned SEC division director Gurbir Grewal.

In his defense of the SEC, Grewal responded by saying the commission had pursued the Delaware-based exchange Poloniex in 2021. Sherman responded, “It’s easier to pursue small fish than large ones.”

Suggested Reading | Bitcoin Can Still Hit $500,000 In 5 Years, According To This Wall Street Veteran

Popular crypto legal counsel John Deaton weighed in on the topic, noting that the US regulator has “stated that it doesn’t make security determinations — only the Federal District Court can.”

Brad Garlinghouse, CEO of Ripple, also commented on Sherman’s statement. He said that the congressman’s remarks demonstrate that he is attempting to pursue a political agenda.

The SEC vs. Ripple case is a hard one to call. Both parties appear to have some procedural success, at least in their own eyes.

For the time being, it’s a stalemate.

Featured image from Photography Informers, chart from TradingView.com
Read Entire Article


Add a comment