Summary:
- Ripple’s General Counsel, Stuart Alderoty, has pointed out that no country, including the United States, has determined that XRP is a security.
- Mr. Alderoty was responding to comments by US Representative Brad Sherman urging the SEC to go after crypto exchanges that had traded in XRP.
- Ripple CEO, Brad Garlinghouse, seconded Mr. Alderoty stating that US Representative Sherman ‘is trying to advance a political agenda’ and ignoring what the law says.
Ripple’s General Counsel, Stuart Alderoty, has highlighted that no country in the world, including the United States, has determined that the digital asset known as XRP is a security.
Mr. Alderoty shared his insights through a two-part Twitter thread (which can be found below) in response to an article that reported US Representative Brad Sherman as urging the SEC to go after crypto exchanges that had traded in XRP.
According to Mr. Alderoty, only the court can determine whether XRP is a security and the SEC’s mandate is enforcement of existing regulations and laws. He added that an existing lawsuit by the SEC does not mean a ruling has been made.
Only the Court can make a determination (it’s called due process). This is the pernicious effect of the SEC’s reg by enforcement approach – harming people, markets and American innovation – with unproven allegations masquerading as regulation.
— Stuart Alderoty (@s_alderoty) July 19, 2022
XRP is a Security – US Representative Brad Sherman.
US Representative Brad Sherman had encouraged the SEC to go after crypto exchanges that traded XRP during a congressional subcommittee hearing earlier today on the ‘Oversight of the SEC’s Division of Enforcement.’
During the hearing, Congressman Brad Sherman had alluded that XRP was known to be a security and the SEC ought to enforce the law and go after the illegal trading that was carried out on crypto exchanges. He said:
The division has determined that XRP is a security and is going after XRP but, for reasons that I’ll bring up in questions, has not gone after the exchanges where tens of thousands of illegal securities transactions were occurring…
You know it’s a security. That means they were illegally operating a securities exchange. If they know it’s illegal and you know it’s illegal and I know it’s illegal, I hope you focus on that.
Ripple CEO: US Rep. Sherman Is Trying to Push a Political Agenda and is Ignoring the Law.
Ripple CEO Brad Garlinghouse also chimed in on US representative Brad Sherman’s comments on the SEC going after exchanges that handled XRP trading. According to Mr. Garlinghouse, Congressman Sherman knows the law as he graduated with honors from Havard and is simply pushing a political agenda.
He said:
[US] Rep. Brad Sherman was magna cum laude at Harvard Law.
He must know better but is trying -yet again- to advance a political agenda over sound policy and ignoring what the law actually says.
[Feature image courtesy of Shutterstock.com]