The legal battle between Ripple and the SEC is heating up, and the back-to-back disclosures of the case make things interesting. Following the revelation of the mystery surrounding the notes in 2012, the former CFTC chairman’s announcement that XRP “is not a security” delighted the cryptocurrency community.
Why is Ripple (XRP) not a security?
Chris Giancarlo, former chairman of the Commodity Futures Trading Commission, spoke with Charlie Gasparin about his historic court battle. “Why is the SEC so committed when you don’t think XRP is a security?” Giancarlo’s response to the question was:
Chris Giancarlo also penned a detailed argument in the International Financial Law Review that the cryptocurrency XRP, formerly known as “Ripple,” is not a security. Since the Ethereum Blockchain was built through an ICO at one point, Gasparin asked why Ethereum was not a security. Chris addressed this question as follows:
In my book, I talk about our work and work with the SEC in 2019, when I was chairman of the CFTC and Jay Clayton was with the SEC, and we came to the conclusion that XRP is not a security. If the SEC wins in this case, will SEC Chairman Gensler be forced to go back in time and view Ethereum as a security? As a result of the litigation, it can be troublesome to consider Ethereum as a security.
The riddle behind the two sealed notes had been revealed before. Ripple may have taken steps to prevent XRP from being classified as a security under federal law, according to substantial evidence.
Latest developments from the SEC case
As we reported in the Somanews news, Ripple CEO Brad Garlinghouse said that “the truth is out there for all to see”, after SEC Chairman Gary Gensler made public the 2012 legal documents containing the attorney’s advice Ripple received, after SEC Chairman Gary Gensler said that “we will not let go” of the case.