The XRP community celebrates after a recent hearing with Judge Netburn in the SEC.
The US Securities and exchange Commission’s (SEC) legal counselors have in a roundabout way expressed that cryptocurrency trades are not damaging any rules by permitting Ripple’s XRP exchanging on their stages, advocate Jeremy Hogan disclosed yesterday.
The court hearing led by Magistrate Judge Sarah Netburn observed and made a statement based on the assumption that everyone who sold XRP has consequently sold illegal securities by extension. However, the regulator’s attorney reportedly pointed out that this is not the case.
“And this is what the SEC’s lawyers said on the record: he said ‘No, under section 4, only Ripple and affiliates of Ripple can have sold XRP illegally’,” Hogan cited the lawyer, adding, “Now, why is that super important? That means that the exchanges that delisted XRP two months ago were not and would not be violating securities laws if they relisted XRP for sale and began to sell it again.”
The SEC had filed a lawsuit against the Ripple Labs, and individually against Garlinghouse and Larsen, for trading unregistered securities. In a press release dated 22 December the SEC argued that Ripple raised funds amounting to around $1.2 billion. Likewise, it alleged that since 2013 Christian Larsen and Brad Garlinghouse had raised an additional $600 million worth of unregistered securities. In both cases, the sales were of XRP.
Ripple investor Barry Sostack on Feb 8 2021 filed for the company to generate documents “improperly withheld” indicating resemblance between Ripple and the SEC. Sostack is the lead plaintiff in a class-action suit against the company.
The SEC faces lawsuits itself as Ripple investors begin circling. They challenge the SEC’s focus on investor protection. The SECs actions, they say, have washed billions of investments off the table, given the market response to the suit the Commission launched. The XRP price dipped, and it was delisted from American exchanges.
However this is what Hogan had to say,
“I wonder if there are perhaps a slew of no-action letter requests coming or already received by the SEC, and if so, I wonder if we will see XRP for sale in the US once again. I hope so,” Hogan concluded.