What made the SEC change its mind after 2018 and claim that XRP is a security now
In a recent tweet, a leading journalist and producer from Fox Business, Eleanor Terrett, stated that on June 13, 2018, attorneys at U.S. Securities and Exchange Commission (SEC) had been researching XRP and did not see it as a security. This preceded the famous speech by William Hinman, former head of the SEC’s Corporate Finance Division, about Ripple and XRP.
recommend bringing any enforcement action against Ripple or its executives. This shows @SECGov lawyers did NOT think it was unequivocal that XRP was a security. So what changed in two years? ?Lots to get into here and @CGasparino will discuss at 3:35PM on @FoxBusiness.
— Eleanor Terrett (@EleanorTerrett) January 19, 2022
XRP was declared not to be security by SEC in 2018
However, in his keynote, Hinman stated that XRP is a security. This information was given to Terret by the founder of Crypto-Law.US, John Deaton. The journalist is currently pondering what might have changed in the two years since and promises more details in discussing the matter with another prominent Fox Business journalist, Charles Gasparino, by the end of today.
In late December 2020, SEC chairman Jay Clayton initiated a legal case against Ripple Labs and two of its top executives: co-founder and former director Chris Larsen and Current head of Ripple Labs Brad Garlinghouse.
The SEC claims that XRP is unregistered security and accuses the parties, as mentioned above, of selling it to institutional investors and making more than $1.3 billion (especially Larsen and Garlinghouse) from exchanges such illegal sale.
Clayton resigned his position in the regulator shortly after that, and Gary Gensler was elected to take over from him.
After the lawsuit began, XRP trading was suspended on some of the world’s largest cryptocurrency exchanges, such as Coinbase, Binance US, Bittrex, and Bitstamp. The price of this coin has plummeted.
In this case, both sides have won small but significant wins, with one attorney withdrawing from both the SEC’s legal team and Chris Larsen’s legal team.
Attorney Jeremy Hogan, who watches the lawsuit as it develops and shares his comments on his Twitter page, hopes that the legal issues between the SEC and Ripple will be resolved by April 2022. In a recent interview, Brad Garlinghouse also hoped that the case would be closed and determined by 2022.
Head of policy at the American Blockchain Association, Jake Chervinsky, recently tweeted that Ripple is giving the SEC the toughest fight of their career instead of just agreeing to a peace deal, like Other crypto companies have been sued by the agency before, including the head of Tesla, Elon Musk.
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