Lawyer for XRP holders in the Ripple Vs SEC lawsuit, predicted that now the commission will be filing cases against exchanges
The Securities and Exchange Commission (SEC) of the United States has published recommendations for cryptocurrency trading platforms. Platforms were advised to record digital assets held for users on their balance sheets at fair value, according to the guideline. According to John Deaton, an attorney for XRP investors in the Ripple vs SEC dispute, the SEC will now file lawsuits against exchanges.
The SEC accused Ripple of selling its native XRP coin to raise $1.3 billion in unregistered digital asset securities in late 2020. According to the SEC’s main assertion, XRP is a security, not a currency, and hence is subject to securities regulations, which it has broken. Meanwhile, the blockchain firm insists that its digital token is a cash, not a security.
The disagreement has resulted in a long-running dispute that has lasted more than a year, with neither party wanting to reach an agreement. Ripple has until April 4, 2022 to respond to the SEC’s request to redact some sections of meeting minutes with the agency and other third parties.
Meanwhile, Deaton, an XRP lawyer, has predicted that one or more lawsuits against crypto exchanges may be filed before the end of the summer. It’s worth noting that the SEC has said that they have turned down several requests to give regulatory guidance on crypto assets over the years. “Responsibility for the absence of legal and regulatory clarity falls at our doorstep,” according to the announcement.
The prominent blockchain startup has transferred the majority of the unlocked tokens back to the escrow address after unlocking over 1 billion Ripple (XRP) from its escrow wallet in the early hours of yesterday. Ripple sent 800 million XRP coins unlocked back to its escrow wallet Wednesday, according to data from WhaleStats, a data analytics business that records significant cryptocurrency transactions. The amount was transferred in two distinct transactions, each of which was valued 400 million XRP ($329,440,486).
In the meanwhile, Ripple unlocked additional tokens in the late hours of yesterday before locking part of the cash in its escrow wallet. The business unlocked a total of 600 million XRP worth around $500 million in three different transactions discovered yesterday.