Ripple explained the victory over the SEC
Date: 2023-08-03 Author: Karina Ziganova Categories: BUSINESS
Startup Ripple has published a quarterly report explaining why it managed to defeat the US Securities and Exchange Commission (SEC) in court.
"This report will debunk several misconceptions we've seen about this decision," the blog says.
Ripple notes that while the quarterly reports are released as a transparency effort, the SEC is using them against the company. This is "ironic for an agency that touts transparency and disclosure."
Ripple about the conflict with the SEC
The company also recalled the decision: on July 13, the court ruled that XRP is not a security. Thus, XRP, along with Bitcoin (BTC), are now the only digital assets in the US with this status.
"The SEC's misguided enforcement campaign has been exposed for what it is - a strategy of intimidation and disinformation in the quest for political power," the blog notes.
Ripple stressed that shortly after the court decision, several cryptocurrency exchanges such as Coinbase, Kraken and Bitstamp made XRP available for trading on their platforms in the US, and XRP became one of the top three digital assets by trading volume. Thus, "not only the court, but also the market spoke out."
Bringing clarity
The startup team believes that since the verdict, a number of inaccuracies and misconceptions about Ripple have emerged. So, the team emphasized that XRP itself has never been a security. While XRP combined with promises can be traded as an investment contract, XRP itself “does not magically transform into a security.”
The claim that the court's decision is wrong because it protects sophisticated institutions but not retail customers is also wrong. According to Ripple, the court ruled that the SEC's jurisdiction ends when there are no securities to regulate.
Ripple concluded that the SEC litigation as a whole provides industry representatives with a roadmap to defend themselves if the regulator attempts to make similar baseless claims against other crypto projects.
