It now seems inevitable outbreak of hostilities between the SEC (Securities and Exchange Commission) and the entire management team of Ripple. The first, in fact, would now have reached the resolution to sue the co-founder Chris Larsen and the CEO Brad Garlinghouse, for XRP sales. To say it was Fortune, which, however, has not been able to specify any date on the matter. The only certain thing at the moment is that a real pitched battle is brewing between politics and the crypto industry.
Because the SEC intends to proceed against Ripple
Because the SEC intends to prosecute Ripple? The accusation would be based on the Company violation of Federal Securities Act, conducted through token sales. An accusation which, however, according to the external consultant Michael Kellogg, by Kellogg, Hansen, Todd, Figel & Frederick, would have no basis.
In fact, according to him, important branches of the United States government, including the Department of Justice and the Department of the Treasury, through FinCEN (Financial Crimes Enforcement Network), have already established that XRP is a currency. Transactions in Ripple would therefore fall outside the scope of federal securities laws. Also according to Michael Kellogg, this is not the first time the SEC has tried to go beyond its legal authority. As has already happened in the past, however, the courts will be the ones to stop his attack. However, it is clearly a simple opinion at the moment.
Brad Garlinghouse's response to the SEC
If at first no comments on the leaked news came from the SEC, it was instead a Ripple spokesperson who provided the company's interpretation of the same data from Brad Garlinghouse via email. The CEO, in fact, reminded that XRP is a currency and should not be registered as an investment contract. Both the Department of Justice and FinCEN have already established that XRP is a virtual currency, since 2015, similar to what other G20 regulators have done. It's still, no other country has taken steps to classify XRP as a title.
The SEC itself has also allowed Ripple to be considered a currency over the years. Except change course a few days after the inauguration of the new administration, led by Joe Biden. Basically leaving one poisoned meatball to the new government. Moreover, as can be understood from the subsequent words of the CEO, which however seem absolutely out of context.
An attack on the entire cryptocurrency industry
The Ripple note went on to say that the decision taken by Jay Clayton must be understood as a real attack against the entire cryptocurrency industry and its tendency to financial innovation. In practice, only the existence of Bitcoin e Ethereum to the detriment of all other players and, above all, the future of global financial systems would be sacrificed to an authoritarian system, the Chinese one.
According to Garlinghouse, in fact, the BTC and Ether networks would be controlled by the Chinese Communist Party. In practice, the CEO of Ripple has decided to put the issue in an exquisitely political key, so much so that he claims to be on the right side of history and to fight a libertarian battle. A line of defense that, however, one cannot understand where it should go. Moreover, it risks putting the entire sector against a government accused in practice of colluding with the China. All that remains is to follow the upcoming events, to better understand what is happening.