As the spat between leading financial regulator, SEC and the Ripple continues, one of the country’s most reputable financial newspaper has come out in defense of the crypto company’s native token, and criticizing the U.S. Securities and Exchange Commission for its flawed efforts to regulate the cryptocurrency exchanges.
The Wall Street Journal’s editorial board accused the agency of using its lawsuit against the tech company to attack its investors and harm the consumer’s interests.
Previously, another prominent media outlet Forbes had shown its support for Ripple, accusing the federal regulator of unfounded and incoherent arguments. It further described the SEC’s lawsuit as a case based on illogical conclusions.
What Exactly is Going on Between Ripple and the US SEC?
Not long ago, the federal regulator filed a lawsuit against the technology ledger provider, alleging that Ripple was using its coin XRP for international payments as unregistered security during its last seven years of trading. It means that since 2013, every single trade by Ripple was illegal. Furthermore, it accused Larson and Garlinghouse of aiding XRP’s violations and enriching themselves through the process.
Currently, the case is still in the discovery stage, meaning that both parties are battling over the information. Yet, if America’s Security Act of 1933 is carefully analyzed, there is nothing in there that refers to cryptocurrencies. Ideally, the federal regulator would ask the U.S. Congress for further clarification into this, which would have eventually led to a clear policy with all the stakeholders on board.
What’s Ripple’s reaction?
Weeks ago, during a hearing at a district court in New York, when the Ripple officials requested the court to ask the SEC to explain how they came to such a conclusion. Besides that, it found out that the SEC was using the agreements with allies, including the U.K., Singapore, and Japan, to seek data on XRP. The company claimed that SEC’s activities played a significant role in hurting the operations.
Although the federal regulator agreed to fulfill some requests by Ripple, it declined to share any information regarding their correspondence with global regulators. Now, the tech ledger provider asks the court to call on the SEC to cease their request to foreign regulators.
Some of the recent disputes in court hearings brought a series of victories for Ripple and many big names coming out in support of the tech company. But is the government agency pushing ahead with its aim to regulate cryptocurrencies as Ripple pins its hopes on SEC’s new boss Gary Gensler to clear the mess?