Ripple and the US Securities and Exchange Commission (SEC) are engaged in a long-running legal battle. However, to protect the infamous Ethereum speech, the committee cited the blockchain company’s token concentration.
SEC tries to protect Hinman’s speech
The Commission cited in a footnote of its latest filings an article titled “The SEC’s Big Cryptocurrency Speech: 5 Things to Know”. It highlighted that some people are doubtful that Hinman’s words are some kind of good news for Ripple.
It added that the fact is that Ripple owns a majority of the XRP offering. Future Blockchain actions could influence the success of the token. SEC further added that it could have a hard time meeting the commission’s “decentralization” bar. This is directly leaning towards exchanges as Coinbase will remain coy about offering XRP.
But John Deaton, XRP holder’s lawyer criticized the SEC for his mention. He said it is like a double-edged sword for the Commission to quote or rely on such comments. Taking this into consideration, Coinbase met with the SEC just 7 months later. They said the committee did not consider XRP a security and signaled that it be listed. The stock exchange listed XRP in February 2019.
Why did Deathon join the Ripple case?
Deaton said the problem for the SEC is that there are specific points in the Howey test that ask how much of the assets a promoter owns. He added that token concentration is a major problem with any digital asset, including Bitcoin.
XRP attorney stressed that owning more than 53% of the founder-owned token is a major concern. Deaton said this is one of the reasons he got involved in the case. He wanted to make sure the court makes a good distinction between Ripple sales and secondary market sales.
Meanwhile, XRP prices are down 2% in the past 7 days. XRP is trading at an average price of $0.372 at press time.
Ashish believes in decentralization and has a keen interest in evolving Blockchain technology, the cryptocurrency ecosystem and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he’s not writing, he plays video games, watches a thriller, or works out outside. Reach me at [email protected]
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This post SEC Cites Ripple Token Concentration; XRP lawyer says not to rely on it
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