SEC sues Ripple, but can’t things be what they seem?
Ripple general counsel Stu Alderoty testified that the United States Securities and Exchange Commission’s (SEC) lawsuit against the San Francisco-based payment company is at the center of a single legal question.
SEC’s Ripple Lawsuit
The United States Securities and Exchange Commission sued both Ripple as a company and its chief executive, Brad Garlinghouse, and founder, Chris Larsen, earlier this week. According to the lawsuit filed, XRP tokens were released as unregistered securities, still continue to be used as unregistered securities, resulting in huge profits.
Before the SEC made its official statement, news that it would file a lawsuit against Ripple had been raised, and XRp had fallen. After the SEC’s official statements, XRP almost crashed and fell to $ 0.21. After the panic mood subsided, XRP, which began to rise, rose to the $ 0.37 band. But after hearing yesterday that the Bitstamp exchange had delisted XRP, the decline began again.
In addition, CEO Garlinghouse said in his statements about the SEC case that the SEC has actually filed a lawsuit not only against Ripple, but also against the entire cryptocurrency ecosystem, and they will not give up on this issue.
The Legal Question At The Center Of The Case
In his remarks, Alderoty questioned why the SEC complaint, which dates back to 2013, had not been filed in seven years.
Alderoty, who also testified that the SEC did not disclose the full story, said: “there are no allegations of fraud or misrepresentation. There is a legal question: did some of Ripple’s XRP distributions form an investment contract? We look forward to making a case in court and providing the sector with the clarity it deserves. As always, the SEC will not disclose facts, citations, etc. he chose and shortened it. For example, it is not mentioned that Ripple’s XRP sales during 2018 represented only 0.095% to 0.43% of global XRP volume, and in the first quarter of 2019 these sales accounted for 0.22% of total trading volume., ” he said.
In addition, Ripple’s attorney says the SEC is trying to act independently of previous decisions. Recalling the US government’s conclusion in 2015 that XRP is digital currency, the lawyer said: “the last time I checked, the SEC is still part of the US government., ” he said.
Ripple CEO Brad Garlinghouse also said in his latest statements that they will soon explain to the world how the case looks from Ripple’s point of view.