Heating, Ripple Calls SEC Allegations Irrelevant And Misleading

JAKARTA – XRP cryptocurrency development company, Ripple Labs is still at war with the US Securities and Exchange Commission (SEC). Recently, Ripple's attorney revealed the latest evidence that dismissed the SEC's allegations in court.

Launching DailyHodl, Ripple considers that the SEC's allegations are unfounded and have the potential to mislead various parties. Where previously, the SEC accused Ripple of not registering the XRP crypto asset so that it had been trading crypto assets illegally.

The US Securities and Exchange Commission has filed more than 70 lawsuits against Ripple Labs. The SEC claims it has “notified” the issuance of XRP in advance to Ripple Labs.

As such, the SEC thinks Ripple should have known that the crypto coins it traded were illegal. The accusation was later dismissed because it was considered to be able to trigger a very misleading debate.

The lawyer considered that half of all SEC charges through Cornerstone Research reports related to initial coin offerings (ICOs), were not actually carried out by Ripple. While the other half are not related to the issuance of the XRP crypto asset. According to Ripple, the SEC's allegations are irrelevant.

“Thirty-seven of the 75 cases cited in the Cornerstone report (about 50 percent of the total) did not involve the sale of digital assets at all. Many of these cases involve selling unregistered shares in unregistered companies that in turn have ties to the cryptocurrency industry.”

Additionally, the attorney added that Ripple disagreed when the SEC considered the sale of XRP to be a securities offering of all charges “involving the sale of unregistered shares”.

Meanwhile, the 37 indictments that the SEC filed against Ripple only involved digital assets in the context of an ICO. Ripple maintains that it is not being treated fairly in terms of securities registration under the Securities Act. Ripple was also not informed that the Securities Act “applied to the sale of digital assets outside the context of an ICO.”

Whereas previously, the SEC referred to Bitcoin and Ethereum as "currencies".

“While the SEC has warned the market about ICOs, it provides unequivocal guidance to the market that the other two established cryptocurrencies – Bitcoin and Ether – are not securities,” said Ripple’s attorney as quoted by DailyHodl, Wednesday 9 June.