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 cryptocurrency community rejoiced when the former CFTC chairman announced that XRP was “not a security.”
Why is Ripple (XRP) not a security?
Chris Giancarlo, former chairman of the Commodity Futures Trading Commission, spoke with Charlie Gasparin about the 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:
I wrote an article where we followed the same approach we did when we were at the CFTC, before the SEC took enforcement action against XRP and Ripple, we analyzed XRP under the Howie test and in the article published in 2020 We concluded that it was not a security. I stand behind this article today.
Chris Giancarlo, in International Financial Law Review (Financial Law Review), He also penned a detailed argument that the cryptocurrency XRP formerly known as “Ripple” is not a security. Since the Ethereum Blockchain was built through the 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 came to the conclusion that XRP is not a security. we arrived. 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.
Recent developments from the SEC case
As we have covered in the news of Kriptokoin.com, SEC Chairman Gary Gensler, after the statements that he said “we will not let go” of the case, took Ripple’s case. After 2012 legal documents containing attorney advice became public, Ripple CEO Brad Garlinghouse said that “the truth is out there for all to see.”
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