The SEC is in the process of suing Ripple and XRP, and they’re doing it because they want to protect investors. But that’s not really what’s happening. They’re just trying to scare everyone into selling their XRP so they can buy them back at a lower price and use them as a weapon against Ripple.
The xrp lawsuit update today is a blog post that discusses the SEC’s misleading of the court. Every XRP holder is a target, and it’s time to stop.
Founder and host of CryptoLaw, John E. Deaton
From 2013 until the present, the SEC’s assault against Ripple has been a case against all XRP transactions. That message is apparent not just in the SEC’s lawsuit, but also in the SEC’s previous assaults on other digital assets. During a March 12 hearing, Judge Sarah Netburn heard SEC prosecuting attorney Jorge Tenreiro declaring it loud and plain in court: “Every sale is a violation.” “Presumably on this premise, any individual in the globe who is selling XRP would be committing a Section 5 (of the Securities Act of 1933) violation based on what you just said,” Judge Netburn pushed Tenreiro. Tenreiro laughed at the judge’s inquiry, claiming that Section 4 protections protect retail XRP holders, and that only “the issuer” is a legal target.
We all know that isn’t the case. Worse, the SEC is aware that it is untrue.
Consider the argument against Telegram. Telegram’s offers and sales of its Gram token were an ongoing violation of Section 5, according to Judge P. Kevin Castel of the same U.S. District Court for the Southern District of New York, and “[w]hen distribution reaches the public, the SEC can invoke jurisdiction and claim that the public needs the protection of the Securities Act.” Every individual that issues or intends to issue any securities is referred to as an issuer.”
Any exchange that offers the token, as well as any retail holder who sells it to someone else, fall under this category.
Tenreiro’s deception of the court goes much farther. He was the SEC’s main counsel in the Telegram case. He understands what he argued and how the court decided the case in the end. In front of Judge Netburn, or any of us, he can’t claim ignorance. We’re keeping a careful eye on the situation and are fully aware of the stakes for us as XRP holders, but also as holders of all cryptocurrencies. Make no mistake: the outcome of this case will have a significant effect on the future of cryptocurrency, at least in the United States.
The SEC’s lawsuit against Ripple does not include any safeguards for XRP holders. This was done on purpose. They should have done so from the start if they intended to reassure the millions of XRP holders. The SEC has yet to provide any comfort, not in Tenreiro’s answer to Judge Netburn, not in their response to our pre-motion letter, and not anywhere else.
In this instance, the SEC’s goal to “protect investors” and “keep fair, orderly, and efficient markets” seems to be futile. Their move to enforce policy by launching an 11th-hour lawsuit not only caused panic-selling of XRP and exchange delistings, but it also cultivated an unequal market by choosing winners and losers, and contributed to the regulatory ambiguity surrounding crypto.
Remember that the SEC sought and won a preliminary injunction in the Telegram case, prohibiting the company from using money generated from the sale of Grams to construct the TON Blockchain, claiming that the company’s fundraising strategy violated current securities legislation. Telegram’s fundraising strategy is remarkably similar to the offering system utilized by Vitalik Buterin to start Ethereum. Intriguingly, ex-SEC Director of Corporation Finance William Hinman said unequivocally that ETH is not a security in his opinion. So, why are you pursuing Telegram? Perhaps it had something to do with the $1.6 million in payments he got from a legal firm that sits on the Enterprise Ethereum Alliance during his time at the SEC.
I have said from the beginning that I am neither a crypto specialist nor a securities lawyer, but it does not take an expert to understand that there is a great deal that is wrong, corrupt, and absurd about the SEC’s action against Ripple. I hope that clarification is on the way, but I worry that the battle for the retail holders in our case has just just started.
The xrp news is a cryptocurrency that has been in the spotlight since its inception. The SEC recently made a ruling that every XRP holder is a target.
Frequently Asked Questions
Does SEC have a case against XRP?
SEC has not released any official statements on XRP, but the release of these statements will be forthcoming.
Why is the SEC targeting Ripple?
The Securities and Exchange Commission (SEC) is a regulatory agency that oversees the securities markets in the United States. They are the ones who have been targeting Ripple because they believe that it is being used to scam people out of their money.
What is the SEC issue with XRP?
The Securities and Exchange Commission is an independent agency of the United States government. It regulates the securities industry in the United States.
Related Tags
- sec case against xrp date
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