Over the past day, the Ripple (XRP) cryptocurrency has risen in price by 9%. Investors love how company is fighting back SEC attacks
The SEC and Ripple are embroiled in a legal dispute. The fintech startup points out that the former director of corporate finance at the SEC in 2018 confirmed that Ethereum is not a security.
Speaking three years ago, former US Securities and Exchange Commission official Bill Hinman said he did not consider Ethereum to be a security. The SEC insists that Hinman expressed his personal point of view, but Ripple unearthed email correspondence between the Commission and a third party that confirms that it was the SEC who shared Hinman’s position.
This is a serious matter. If everything is confirmed, it means that Hinman lied to the court. The judge demanded that the SEC provide two documents on the Commission’s meetings with law firms and the mentioned e-mails, as well as explanations for each of these documents, by October 15th.
Ripple’s lawyers have presented the SEC with a choice: to admit that Hinman’s comments are his personal opinion. In this case, the Commission will not be able to refer to the so-called privileged process, which allows the executive authorities not to disclose information regarding their internal processes. The second option is to admit that Khinman expressed the position of the department. If so, the SEC may not provide documents, but Hinman’s comments will be used as an argument on the Ripple side.
SEC ignored admission requests
Ripple’s lawyers also say the SEC has ignored nearly 30,000 RFAs. The Securities and Exchange Commission responded that the inquiries were onerous and that it spent 100 hours responding to 254 such inquiries. RFAs are needed to quickly resolve conflicts between the parties to the case in court. The answers received are considered to be given under oath and can be used against the responding party.
After the Ripple attack, the XRP rate rose by 9% in less than a day and reached the level of $ 1.22. However, it was not possible to gain a foothold at new levels. At the time of writing, XRP / USD is trading at $ 1.17
What the SEC and Ripple did not share
The fintech startup that issued the token insists it doesn’t fit the definition of a security. The head of the company, Brad Garlinghouse, proposes to consider it as a digital currency, along with Bitcoin and Ethereum. Garlinghouse was in charge of XRP use cases in 2016. He promoted it as a link between financial institutions and the international money transfer industry. Banks will not have to hold stocks of rare currencies.
As part of a partnership with Moneygram and Santander, the company sold tokens worth $ 1.38 billion, which attracted the attention of the regulator. The SEC filed a lawsuit against Ripple in December 2020 for the sale of $ 1.38 billion in securities.
Read about how the conflict between the regulator and Ripple developed in a special material from BeInCrypto…
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