XRP vs SEC Ripple lawsuit has managed to spark the interest of every crypto enthusiast. Ripple has managed to win small key battles within the case step by step, while SEC was jumbled with their statements to the contrary.
By the end of 2020, the United States Security and Exchange Commission (SEC) has filed a lawsuit against Ripple and its officials. SEC claimed that Ripple’s XRP token is a security and that Ripple has traded XRP tokens worth more than $1.3 billion.
However, Ripple did not accept the allegations, claiming that the trading was purely legal as XRP is not among the securities.
Is SEC biased about ETH?
In defense, Ripple raised an important objection: “Why does SEC consider XRP a security while leaving BTC and ETH from it?” Ripple chief Brad Garlinghouse even called SEC publicly, claiming that the agency is biased for helping ETH surpass XRP.
In December 2017, XRP was the second largest crypto asset by market capitalization. It currently ranks 6th, while Ethereum has since taken 2nd.
Here are some key events that raise questions about how SEC is handling this lawsuit.
In June 2018, William Hinman, former SEC director, said publicly that the commission would not treat Ether or Bitcoin as securities. According to reports, Ethereum Foundation has raised funds of more than $60 million by selling ETH coins. In 2018, Gary Gensler, then a professor at the Massachusetts Institute of Technology, argued that Ethereum violated federal law by issuing $18 million worth of tokens without registering them as securities with the SEC. In 2022, SEC head Gary Gensler seems to forget what he said in 2018. In a recent interview, he looked hesitant to answer a question about the difference between Ripple and Ethereum using their tokens in public markets.
The mean look of @GaryGensler is because tens of thousands of retail #XRPholders refuse to stop getting him in the face with his questions @SECGov refuses to answer. And we’ve only just begun pic.twitter.com/rZ8r7CkLi2
— CryptoLaw (@CryptoLawUS) February 15, 2022
Case Reveals Help Ripple
To date, the Ripple vs SEC lawsuit has seen many major disclosures, and the XRP defendant believes more will follow. Any disclosure regarding the matter has only benefited Ripple and turned out to be a big mistake by SEC.
Recently, case judge Analisa Torres issued some orders in favor of Ripple. After the mystery of the two sealed memos, the Estabrook Notes have compounded the SEC’s concerns in the case. These notes were made by Commissioner Roisman’s counsel at the time, Matthew Estabrook. These are believed to contain the insider conversation between Commissioner Roisman and Bradley Garlinghouse dated November 9, 2018.
Following these reactions coming out in the XRP public community, the XRP community is overjoyed and there is also positive sentiment in the market. The recent development has proved to be a good sign for the currency as the XRP price has risen in recent days.
The lawsuit is still pending and may take more time to complete. Given some facts and arguments presented by both parties, it can be seen that the SEC has made many contradictory statements and is trying to hide some facts.
And if SEC proves wrong in the cases, it can certainly create mistrust among the people towards the government agencies.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.
About the author
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 is not writing, he plays video games, watches a thriller or participates in outdoor sports. Reach me at [email protected]
This post Why could an SEC lawsuit against Ripple (XRP) turn out to be a big mistake?
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