SEC Lawyer Says Crypto Exchanges Can List XRP Without Being Sanctioned
The entire crypto sector, especially the XRP community, was in disbelief as rumors started making the rounds last year. The parent company of the digital asset, Ripple, could get sued by the United States Securities and Exchange Commission. While the rumor went on, most of them started ushering reassuring words, but things took a turn for the worse when the United States SEC officially announced the lawsuit.
The SEC pointed out that the crypto payments platform listed and sold unregistered securities since when the coin was developed. While they continued to go back and forth, most crypto exchanges across the United States were busy protecting their own interests.
The United States and Ripple still slugging it out in court
After the news broke out, the crypto exchange started suspending trades of the digital asset while some chose to delist it. Even though the crypto community and some entities outside the US chose to back the coins, the price of the digital asset started declining due to the way sell-off plagued the asset.
In a new and updated statement in a court sitting, the United States Securities and Exchange Commission lawyer has mentioned that crypto exchanges were not officially going against any rule if they continue to offer their users the digital asset.
According to the legal representative, Jeremy Hogan, the crypto exchanges would not face any sanction if they continued to provide their customers with digital assets. This means that during the period that most of them feared a sanction, they would have continued allowing their clients to trade and use the digital asset.
XRP is doing well in the market at this moment
This statement came as a result of the statement by the court’s magistrate, Judge Sarah Netburn, where she pointed out that those who used the digital assets during the period sold them illegally. To combat that statement, the lawyer had to note that it was not the case. He mentioned that under section 4 of the rule, only Ripple and their recognized affiliates would have sold the assets illegally in this case.
He mentioned that it means that the crypto exchanges that suspended trades of the digital assets months ago would not be going against the law if they were still trading it. The SEC lawsuit is worth $1.3 billion, and if Ripple is eventually found guilty, they would have to pay this hefty sum as penalties.
Asides from the lawsuit against Ripple, the SEC also went for the organization’s heads, the current CEO, Brad Garlinghouse, and founder Chris Larsen. Since 2013, Ripple has sold nothing less than $600 million. Even though the price of the asset is still coming back, it saw a decline to reach lows during the period.