SEC vs Ripple suit could decide the future of agency’s ability to regulate crypto & it might not end
According to Charles Gasparino, a journalist who sometimes serves as a panelist on Fox Business Network weighed in on the SEC’s lawsuit against Ripple. He said that its outcome could yield some determination of the SEC’s authority over the crypto industry in the future.
Charles Gasparino of Fox Business
SEC vs. Ripple suit the deciding factor for crypto regulations in the US
This is an observation frequently made as the ruling on the case could be a watershed moment for the entire crypto industry. The SEC sued Ripple, accusing the company of selling its cryptocurrency, XRP, without registration due.
However, the circumstances surrounding the allegations appear to have been unclear from the outset. Gasparino pointed out that Ripple and XRP investors have argued that the SEC has not been fair in their failure to apply the same argument to the already born ETH through a similar approach.
The comparison is not unfounded, as similar to XRP, ETH carried out what appeared to be an Initial Coin Offering (ICO) in 2014 to raise money to build out its platform. However, the SEC has given ETH a free pass stating that the platform was built out and is only selling as a commodity now.
This is why XRP holders are now against the SEC, accusing its officials of profiting/benefiting from ETH. Gasparino claims to have documents in it that make these allegations. This is one of the reasons he thinks some other agency, possibly the Biden administration’s working committee on cryptocurrencies, has to step in to clarify the situation.
He also recommended that Congress pass legislation to clarify regulatory uncertainty and cut regulation by the SEC with enforcement to stifle innovation in the nascent industry gaining traction. This is also the recommendation of the SEC commissioner, Hester Pierce.
In a recent development of this case, as AZCoin News reported, Ripple and its co-founder Chris Larson responded to the SEC’s response to their petition regarding clarity regarding the application of the Howey Test to with the sale of XRP over the past eight years.
According to the law, the filing, which was posted on Twitter by attorney James K. Filan, argued that the SEC’s response to their motion constituted a refusal to comply with basic obligations imposed on all parties. It further highlights the interrogatories that the commission refused to answer and recommended that the court dismiss the case.
However, the SEC argued that Ripple was seeking answers and all other documents to provide inappropriate defense and questioned the committee and the trustworthiness of its employees.
The lawsuit has September 20 as the next date: Brad Garlinghouse (September 14) and Chris Larsen (September 20) filing deadlines, which were initially supposed to occur on September 8. Ripple will also have the opportunity to object to the summary of the letter from the SEC on September 28. The defendants are expected to file objections for relevant comments to the SEC’s arguments.
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