Ripple (XRP) Price Picks Up As SEC Legal Showdown Drags On
May 15 2022 - 12:50PM
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Ripple (XRP) rallied to $0.439217 Friday from $0.377384 on Thursday
in the face of an ongoing Securities and Exchange
Commission lawsuit following the comments of William Hinman,
former SEC Corporate Finance director. Suggested Reading | Crypto
Analyst Predicts 1 Altcoin Will Fall Down Hard – Is It Cardano?
Ether are not securities, Hinman said. (Bitrates.com) William
Hinman: Ether Not a Security A judge has granted the request of SEC
to file a reply concerning the case against Ripple Lab. The case
was ignited by the speech of Hinman, stating that Ethereum is not a
security. Emails recovered as evidence strengthened claims that
Hinman had some conflict of interest connected to those comments.
In 2018, Hinman’s speech included this statement: “Based on my
understanding of the present state of ether, the Ethereum network
and its decentralized structure, current offers and sales of Ether
are not securities transactions.” Hinman’s speech stated that
Ethereum is not a security which insofar is tagged as an opinion
based on his own understanding of Ether and the Ethereum Network.
More so, the decentralized nature, and Ether transactions and sales
are not secure, according to his personal knowledge and
understanding. On the other hand, Hinman attested that there are
four criteria barring the rationale rendered by SEC, stating that
said communications made in 2018 won’t fall under the
attorney-client privilege. XRP total market cap at $20.60 billion
on the weekend chart | Source: TradingView.com In addition,
communications made by Hinman isn’t confidential information.
Further, if in case SEC discovers any other information that can be
protected, the only person who can claim that is Hinman. Ripple
Violated Securities Act of 1933? Ripple’s defense on this case is
that XRP’s purpose can’t classify the coin as a security. SEC has
no power or authority over Ripple considering that XRP’s function
is as a medium of exchange. Further, Ripple states that the
currency is utilized as an intermediary intended for remittance and
not a security. Suggested Reading | NFT Prices Take A Beating
After Crypto Market Chaos Ripple also defended that SEC did not
clarify the classification of digital assets which failed to
provide Ripple Labs timely guidance or warning as to how the
current laws apply to XRP. However, SEC contested that Ripple has
in fact obtained advice from them in 2012 identifying its product
as an investment which requires SEC regulation. Hinman’s speech,
however, further strengthens Ripple’s defense as it implied that if
Ether or XRP was bought to participate in a decentralized platform
and not for earning from trading activity, then it’s definitely not
a security. Featured image from CryptoGlobe, chart from
TradingView.com
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