- The attorney condemns the SEC for failing to provide credible evidence to support their claims.
- XRP price crashes due to disagreement.
The Ripple SEC lawsuit will last as long as we can imagine after the US-based company spoke against the SEC at yesterday’s preliminary conference. Ripple Labs announced that the SEC has given no clarification on whether XRP is a security. In other words, there is no fair release from the Securities and Exchange Commission.
In addition, the company’s lawyers in defense of the Ripple laboratories have blown the commission for different ways of dealing with XRP. They said the lawsuit against Ripple-SEC took longer than expected before it was launched, adding that they shouldn’t have waited several years before filing the case. The lawsuit was filed against CEO and Chairman Brad Garlinghouse and Chris Larsen in December 2020.
Ripple SEC lawsuit: Ripple Attorney blows up the SEC
Andrew Ceresney, an attorney who supported Ripple Labs at yesterday’s conference, was quick to criticize the SEC’s actions. He said the SEC had no evidence to justify their Ripple’s security claims as it took eight years to raise a case. He added, “In 2015, FinCEN and the Justice Department named Ripple a cryptocurrency and ruled that both ether and bitcoin are not securities either.”
The Ripple-SEC lawsuit alleges that Ripple illegally sold XRPs – in violation of Sections 5 (a) and 5 (c) of the US Securities Act of 1933, which outlines the illegal offering and sale of securities . The SEC accused Brad and Chris of making profits from the sale of XRPs and viewed the transactions as unregistered forms of security offerings.
However, Andrew contradicted the SEC’s allegations, stating that an exchange had reached out to the SEC to list XRP in 2019 and the SEC had not notified the exchange that XRP was being viewed as collateral. Due to the lack of information, exchanges with their business continued when they listed XRP.
XRP price falls after lawsuit
The Ripple SEC lawsuit caused XRP a significant loss in December. The price of the cryptocurrency fell from $ 0.60 to $ 0.25, a 60 percent drop, prompting many exchanges to delist it. As of now, Ripple (XRP) is currently trading at USD 0.43 (21 percent loss) after yesterday’s pre-conference.