US Congressman questions SEC’s lack of action against ‘big fish’ exchanges if Ripple is a security
U.S. lawmaker Brad Sherman wonders why the Securities and Exchange Commission (SEC) didn’t track cryptocurrency exchanges that facilitate Ripple (XRP) transactions if they considered them to be securities. I am.
Sherman raised this question during the Investor Protector Subcommittee monitoring hearing July 19th. Sherman said:
“This department has determined that XRP is a stock and is chasing XRP, but for the reason of asking, it is not chasing the exchange where tens of thousands of illegal securities transactions were taking place.”
The subcommittee is investigating the role of SEC enforcement in the crypto industry, and department head Gurbir Grewal testified earlier.
In Sherman’s view, SEC executives need to take better action to fulfill their role effectively.
“If XRP is security-and if you think so, and if so, why aren’t these crypto exchanges violating the law? In the past, we promised we wouldn’t do any more in the future. Is it enough to unhook you for execution? “
He knew that XRP was an illegal security, so the Commission added that enforcement measures should be taken against major exchanges.
Several major crypto exchanges, including Coinbase, Bitstamp and Crypto.com, have delisted XRP after the SEC filed a proceeding against Ripple.
Ripple counterattacks
Ripple’s legal counsel, Stuart Alderoty, countered Sherman’s statement, noting that no court has declared security for XRP in the United States or elsewhere.
Only the court can make a decision (this is called due process). This is a detrimental effect of SEC regulation through an enforcement approach, with unproven claims disguised as regulation, and harms people, markets, and American innovation.
— Stuart Alderoti (@s_alderoty) July 19, 2022
According to Alderoty, only the court can determine whether XRP is secure.
Ripple CEO Brad Garlinghouse also expressed his view on the legislator’s statement.
Garlinghouse said the US representative’s comments indicate that he is only trying to move the political agenda forward.
manager @BradSherman I was honored at Harvard Law. He needs to know better, but he’s pushing the political agenda over sound policy and trying to ignore what the law really says. https://t.co/ypIotiBIBf
— Brad Garlinghouse (@bgarlinghouse) July 19, 2022
Popular crypto lawyer John Deaton also helped with the issue, saying the SEC “has made no security decisions and can only be made by the federal district court.”
Everyone:
Remember @SECGov Does not determine if the asset is a securities.
Go back and read the opposite of the SEC #XRPHolders Petition for a warrant for Mandamas.
The SEC said it would not make security decisions and could only be made by the federal district court. https://t.co/LL7HZ3K06p
— John E Deaton (207K followers watch out for scammers) (@ JohnEDeaton1) July 19, 2022
