SEC Party Insists On Calling XRP A Security

The Ripple vs SEC case. (buyucoin)

JAKARTA – The feud of the US Securities and Exchange Commission (SEC) with Ripple (XRP) is still ongoing. The trial began in December 2020 and has yet to find a bright spot until now.

According to a recent report, the SEC's Division of Law Enforcement Section, Brad Sherman stated that XRP is a security. This statement is in line with William Hinman's claim in his speech regarding the categorization of XRP.

Furthermore, Sherman questioned why the SEC didn't shut down trading platforms that offered illegal securities like XRP. Sherman addressed the question to the director of the Division, Gurbir Grewal.

In addition, Sherman considers that crypto exchanges that trade XRP are similar to illegal stock exchanges. The SEC took Ripple to court in late December 2020 alleging that Ripple and its officials had sold XRP which they claimed was unregistered securities.

Until now, the case is still ongoing and it is not known whether it will end this year or in 2023. The court also has not determined the regulatory status of the token. Ripple's general counsel, Stuart Alderoty, declined to comment on Sherman's recent statements. He only assessed the SEC's actions as a whole.

“This is the damaging effect of SEC regulators with an enforcement approach – to the detriment of American people, markets, and innovation – with unproven allegations masquerading as regulation,” Alderoty said.

Since Ripple was sued by the SEC in court, a number of major crypto exchanges such as Coinbase and others have started to stop trading XRP in order to comply with applicable regulations.

As is known, Sherman is a person who often criticizes cryptocurrencies. In 2018, he called for a complete ban on cryptocurrencies. In June 2022, he called for shutting down the crypto industry and revealed that he would rather let people buy lottery tickets than digital assets.