The battle between Ripple and SEC is heating up and the successive revelations in the lawsuit have kept it interesting. After revealing the mystery behind the memos, a statement by the former CFTC chairman declaring XRP “no security” has cheered the coin’s community.
Why is XRP not a security?
In an interview with Charlie Gasparin, ex-CFTC chairman Chris Giancarlo discussed the historic legal battle. When asked, why is the SEC so adamant that XRP is a security when you think it isn’t?
Chris replied before SEC launched its enforcement action against XRP and Ripple, I wrote an op-ed where we took the same approach we would have taken when I was at the CFTC, we analyzed XRP token under the Howie test and we came to the conclusion that in 2020 article that ‘it wasn’t security’. And I stand behind that article today, he added.
— Charles Gasparino (@CGasparino) February 18, 2022
Chris Giancarlo actually wrote a detailed argument published in the International Financial Law Review as to why XRP, the cryptocurrency formally known as “ripple”, was not a security.
Why isn’t Eher a security because they once did an ICO to build the Ethereum blockchain, Charlie Gasparin asked.
In my book, I talk about our analysis and work with the SEC in 2019 when I was the head of the CFTC and Jay Clayton was at the SEC and we came to the conclusion that XRP is not a security, Chris Giancarlo replied. And if SEC wins this case, SEC Chief Gensler should go back in time and basically view Ether as a security, Charlie added.
So the analogy is sure that after the outcome of the case, it will be a challenge to the way Ethereum is considered.
Earlier, the mystery behind the two sealed memos was revealed. The critical evidence suggests Ripple made an effort to prevent XRP from being considered a security under federal law.
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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 analyses. 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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