Ripple’s lawyer lifts the veil – It has now been a year and a half since the Securities and Exchange Commission (SEC) filed a complaint against Ripple Labs. The legal battle is therefore initiated. The question ? Knowing whether XRP tokens should be considered as securities (securities). After having known many twists and tired of the relentlessness of the SEC, theRipple’s lawyer decided to share his point of view.
Ripple’s lawyer bangs his fist on the table
On June 13, 2022, Ripple’s attorney, Stuart Alderoty published a column. In this one, he criticizes the SEC and accuses him of bankrupting crypto innovation in the United States:
“By taking enforcement action – or threatening potential enforcement – the SEC intends to intimidate, bulldoze and bankrupt crypto innovation in the United States, all in the name of the inadmissible extension of its own jurisdictional limits. »
Moreover, according to Ripple’s lawyer, the ongoing lawsuit against his client is part of “The SEC’s Assault on All Cryptos in the United States”. So the regulatory vagueness would be cultivated by the American financial regulator. He may consider as he pleasesthat this or that cryptocurrency should be considered a financial security.
Also, Stuart Alderoty denounce the rejection of its argument, based on the speech by William Hinman, per the SEC. He argued during the trial that this speech was applicable to Ripple’s token (XRP). The reasoning is simple: if Ether and Bitcoin are non-financial securities, so is XRP.
However, with the SEC showing a slight bad faith. She claimed that this speech was only the personal opinion of its author and not the official opinion of the regulator. This counter-argument from the SEC is puzzling. In effect, William Hinman held the position of finance director companies at the DRY from 2017 to 2020.
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When will the adoption of clear regulations by the SEC on cryptocurrencies in the United States?
First, let’s go back to the famous William Hinman speech mentioned by Ripple’s lawyer. In a 2018 speech he said theEther (ETH)which should be considered as a security token, shouldn’t be anymore. Indeed, Hinman justified his statement. He then explained that widely traded Bitcoin was “decentralized”. Ether had become “sufficiently decentralized” over time. Thus, these 2 cryptocurrencies should not be considered as financial securities.
Admittedly, this justification is very slight. It does not make it possible to deduce any legal qualification, which has serious consequences for crypto companies.
However, in the absence of any other element formalit is completely understandable that this speech given by a member of the SEC in 2018 is used by Ripple for the sake of its defense against the regulator.
Finally, Ripple’s lawyer concludes his intervention with a statement of desolation:
“In the 4 years since Hinman’s speech that has only muddyed the crypto waters. Lhe United States still desperately needs clear rules of conduct that embrace innovation while protecting consumers and the integrity of markets. »
Moreover, on the occasion of a interview given to CNBC last January, the Chairman of the SEC, Gary Genslerinsisted on the need to introduce a clear regulations on crypto to protect investors. So what are they waiting for?
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