Ripple Lawyers Say SEC Mentioned Irrelevant Evidence In XRP Case

Ripple lawyers say the recent evidence cited by the US Securities and Exchange Commission (SEC) against the San Francisco-based payments firm is completely irrelevant and misleading. The SEC accuses Ripple of illegally selling its native XRP token as an unregistered security and claims that XRP still has one today. The SEC cited more than 70 related lawsuits to claim that Ripple was "informed" about XRP issuances and therefore should have known that its tokens were illegal. However, Ripple's lawyers argue that this claim is "not only controversial but also highly misleading". According to lawyers, half of the cases cited by the SEC in Cornerstone Research's report involve initial coin offerings (ICOs), which Ripple did not, and the other half do not involve the issuance of digital assets like XRP. Thirty-seven of the 75 cases identified in the Cornerstone report (about 50% of the total) did not involve the sale of digital assets at all. Many of these cases involved the sale of unregistered shares in companies with ties to the cryptocurrency industry. Ripple clearly did not realize that the SEC would view the sale of XRP as a security offering in cases where unregistered shares were sold. What was brought in regarding digital assets was in the context of an ICO. The SEC does not claim that Ripple is involved in an ICO. In its opposition letter, Ripple cited that it is not a fair statement that the registration requirements of the Securities Act will apply to the sale of digital assets outside the context of the ICO. Lawyers also note that the SEC has previously referred to Bitcoin and Ethereum as "currencies". While the SEC warns the market about ICOs, two other established cryptocurrencies hit the market.

Join the Discussion

  • BrokerEUR/USD
    LCG 0.3pips (variable) margin: 3.33%
    City Index 0.5pips (fixed) margin: 3.33%
  • Back to top