The lawsuit filed by the SEC against Ripple in the last days of 2020 on the accusation of unfair profits through unregistered sales is still ongoing. Aside from the predictions that the case will be concluded this year, Ripple’s token XRP continues to rise despite the chaos in the market in recent days. Gary Gensler, Chairman of the SEC, the US market regulator, said that the SEC takes the lead in defining what a security is, and that the legislation is not mandatory.
Speaking to reporters after a session in the House Appropriations Committee, Gensler stated that current securities laws cover most of the activities that take place in the crypto markets. I think most legislative instruments, if passed, would weaken securities mandate, Gensler added.
Brad Garlinghouse, CEO of the Ripple company, which is on trial for the allegation that the XRP it issues with the SEC is an unregistered investment contract, responded to Gensler’s statements on Twitter. Garlinghouse pointed out that the SEC has failed in clarity. Citing the news, Ripple CEO Brad Garlinghouse used the following statements:
“For the Chair of the SEC to assert that he dictates what is a security – and not the legislation from which his agency derives its power – is beyond comprehension. It’s time for elected officials in the US to take notice.“
“When you behave like an autocrat running a $2.2B bloated agency, why would you ever want to provide clarity about what’s “in or out”? Without clear jurisdiction, ambiguity masquerades as power. Read that again.“