Ripple pushed back against the SEC’s allegations
Ripple has filed a Freedom of Information Act (FOIA) request to the court on the 29th after being sued by the US Securities and Exchange Commission (SEC) for violating the securities law.
“The functionality and liquidity of XRP are wholly incompatible with securities regulation. To require XRP’s registration as a security is to impair its main utility,” the response said.
Ripple’s 93-page counter-thesis mainly describes the features and roles of XRP.
The FOIA request in question, brings into question Ether’s status. Representatives at the SEC have repeated many times that, while its presale may have been a securities offering at the time, Ether is sufficiently decentralized that it qualifies as a commodity and thus, Ether trading in the U.S. is under the jurisdiction of the Commodity Futures Trading Commission.
In addition, the US Treasury’s Financial Crimes Enforcement Network (FinCEN) and the US Department of Justice concluded in 2015 and 2020 that “XRP is being used legally and traded in the market as a cryptocurrency.” Also pointed out.
The SEC sued Ripple, Garlinghouse CEO and co-founder Chris Larsen last December — states that from at least 2013 Garlinghouse and Larsen sold more than 14.6 billion units of the digital asset XRP in return for cash or other consideration worth over $1.38 billion to fund Ripple’s operations and enrich themselves. After the proceedings, the price of XRP has collapsed and many exchanges have delisted the token.
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