Exchanges can list XRP safely according to the Securities and Exchange Commission’s lawyer because they are not violating anything by supporting ripple trading as we can see in our latest XRP news today.
The US Securities and Exchange Commission’s lawyers indirectly stated that crypto exchanges can list XRP safely and they will not be violating any guidelines by allowing Ripple’s XRP trading on their platform. During a court hearing, attorney Jeremy Hogan revealed that exchanges won’t have any issues with listing the coin but Magistrate Judge Sarah Netburn made a remark to that note, saying that anyone who sold XRP has consequently sold illegal securities by extension. Hogan, on the other hand, explained more clearly:
“And this is what the SEC’s lawyers said on the record: he said ‘No, under section 4, only Ripple and affiliates of Ripple can have sold XRP illegally’. Now, why is that super important? That means that the exchanges that delisted XRP two months ago were not and would not be violating securities laws if they relisted XRP for sale and began to sell it again.”
The SEC filed last December a $1.3 billion lawsuit against Ripple Labs and its executives Brad Garlinghouse and Chris Larsen. In the lawsuit, the regulator alleged that XRP tokens can be seen as unregistered securities making their sales illegal. The SEC alleged that since 2013, the Ripple executives and the company illegally earned over $600 million by selling XRP. After the news emerged, XRP’s price dropped and plenty of exchanges including eToro, Coinbase and crypto.com suspended the trading of XRP or delisted it.
As promised, stayed up late to shoot the video on today's bombshell dropping discovery hearing. Enjoy and I am going to sleep! https://t.co/CcEQoM0TKe
— Jeremy Hogan (@attorneyjeremy) March 20, 2021
Other digital asset investment companies like Grayscale, dissolved their XRP trust due to legal woes. However, these companies could have made a quick and wrong decision according to Hogan:
“I wonder if there are perhaps a slew of no-action letter requests coming or already received by the SEC, and if so, I wonder if we will see XRP for sale in the US once again. I hope so.”
As we recently reported, The legal dispute between SEC and Ripple is going on full force as the payment processor requested from the regulator to produce documents on Ethereum and Bitcoin as they are deemed not to be securities. At the same time, thousands of holders asked the federal judge to serve as third-party defendants as well. Ripple seeks documents in the latest developments of the lawsuit which came to light a day after the new letter sent to Judge Analisa Torres.
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