The SEC has been a thorn in the side of cryptocurrency investors for quite some time now. It’s not just the constant regulatory uncertainty that makes investing in this space difficult, but also the lack of clarity on how to invest.
The memo of law by ripple is a document that was created by the SEC. It outlines how the SEC will be treating cryptocurrencies in the future.
CryptoLaw’s Founder and Host, John E. Deaton
The US Securities and Exchange Commission filed a lawsuit against Ripple nearly five months ago, almost to the day, but made it plain that it was going after everyone linked to XRP. They disregarded warnings that this litigation would hurt a large number of individuals. Since December 22, 2020, there has never been a single word in the mound of pages submitted by the SEC that indicated even a smidgeon of concern for the retail investors they are meant to be protecting via their enforcement actions. The SEC laughed and ridiculed us in their official answer when we requested the court to hear our voice, stating that all of us who experienced collateral harm as a result of their ill-conceived case should stay quiet.
We responded to them today.
On behalf of a whole community of XRP holders, users, developers, content producers, and the numerous small companies that use the digital currency XRP as well as the XRP Ledger, I have just filed our Motion to Intervene in the matter of SEC v. Ripple. In short, I told the court that we would be without a voice in a discussion with huge stakes for us and other digital asset holders in the US if we didn’t intervene.
When the SEC filed this lawsuit against Ripple and its two executives, it claimed that not only did Ripple and its executives conduct an unprecedented eight-year continuous and ongoing coin offering, but that XRP itself was an unregistered security, and that all of us who have traded it since 2013 have engaged in illegal trades.
This alarming assertion is not hidden or difficult to discover in any way. The SEC refers to XRP as a “digital asset security” in the opening paragraph of their lawsuit. “From 2013 to the present, Defendants sold approximately 14.6 billion units of a digital asset security called XRP,” according to the SEC. Any sale or transfer of XRP by any organization, business, or person, according to the SEC, is a violation of Section 5 of the Securities Act. They even go so far as to claim that XRP has “no value” other than as a Ripple investment contract, despite the fact that a large community of XRP users and developers has existed for years entirely independent of Ripple. When the SEC accused XRP holders of engaging in a “common business” with Ripple, a large portion of them had never heard of Ripple. The ridiculousness and hubris of this uncontrolled, out-of-control regulator’s statements are completely false. Their reasoning would only hold water if the SEC could prevent any XRP retail holders from coming out and sharing our story about how we utilize this digital currency in a variety of ways.
It should give all cryptocurrency investors and developers confidence that the United States District Court for the Southern District of New York is not buying what the SEC is attempting to sell in this case. It has sued the SEC’s lawyer over XRP’s usefulness and his ridiculous claim that all XRP sales are unregistered securities transactions. Best of all, the court has asked us to present our argument for why retail investors, whom the SEC is meant to protect, should be allowed to participate in the case.
The SEC has enabled XRP, the XRP ledger, and its related technologies to grow from a promising digital asset with better functionality to the world’s third-largest digital currency in more than eight years. The XRP of 2021 is not the same as the XRP of 2013. For these reasons, it is obvious that those of us who own and use XRP have a right to intervene in this lawsuit to ensure that our interests are properly protected. When the SEC filed its case in December, they chose to dismiss those very interests.
If the SEC succeeds in its assault on Ripple and XRP, it will have the power to regulate and prosecute all other cryptocurrencies. No digital asset exchanges, developers, suppliers, regular users, or retail investors of cryptocurrencies will be protected if the precedent established here becomes the new norm.
The court must now determine whether or not we may join the lawsuit. Nothing is certain, and we must accept the final judgment of the court. But I’m pleased and humbled to have the confidence and support of such a vibrant and forward-thinking community of XRP holders who refused to give up when the government raised its fist and ordered us to be quiet.
The cryptocurrency’s future in the u.s. is threatened by sec action against ripple is a blog post from a cryptocurrency blogger who believes that the SEC’s decision to file charges against Ripple Labs will have a negative impact on cryptocurrencies in general and the U.S. market specifically.