US Congressman questions SEC’s lack of action against ‘big fish’ exchanges if Ripple is a security

U.S. lawmaker Brad Sherman questioned why the Securities and Exchange Commission (SEC) did not consider cryptocurrency exchanges promoting Ripple (XRP) trading to be securities. increase.

Sherman raised this question during the Investor Protector Subcommittee monitoring hearing July 19th. Sherman said:

“This department has determined that XRP is a stock and is tracking XRP, but for the reason of asking, it is not tracking the exchange where tens of thousands of illegal securities transactions were occurring.”

The sub-committee is investigating the role of SEC enforcement in the crypto industry, with department head Gurbir Grewal testifying before that.

In Sherman’s view, the SEC executives need to take better action to fulfill their role effectively.

“If XRP is security-and you think so, and I think so, why are these crypto exchanges not violating the law? In the past, we have to do more in the future. Do you promise? “Is it enough to unhook you for execution? “

He knew that XRP was an illegal security, so the Commission should take enforcement action against major exchanges.

Several major crypto exchanges, such as Coinbase, Bitstamp and Crypto.com, have ruled out XRP after the SEC has filed a proceeding against Ripple.

Ripple counterattacks

Ripple’s general counsel, Stuart Alderoty, responded to Sherman’s statement, noting that neither the United States nor any other court has declared security for XRP.

Only the court can make a decision (this is called due process). This is a detrimental effect of SEC regulation with an enforcement approach, with unproven claims disguised as regulation, and harms people, markets, and American innovation.

Stuart Alderoti (@s_alderoty) July 19, 2022

According to Alderoty, only the court can determine whether XRP is secure.

Brad Garlinghouse, CEO of Ripple, also expressed his view on what Congressman said.

Garlinghouse said the comments of a US representative show that he is only trying to push the political agenda.

manager @BradSherman I was honored at Harvard Law. He needs to know better, but he’s pushing the political agenda over sound policy and trying to ignore what the law really says. https://t.co/ypIotiBIBf

Brad Garlinghouse (@bgarlinghouse) July 19, 2022

Popular cryptocurrency lawyer John Deaton also helped with the issue, saying the SEC “has not made security decisions and can only be made by the federal district court.”

Everyone:

Remember @SECGov Does not determine if the asset is a securities.

Go back and read the SEC’s dissent #XRPHolders Petition for a warrant of Mandamas.

The SEC stated that it does not make security decisions and can only be made by the federal district court. https://t.co/LL7HZ3K06p

John E Deaton (207K followers watch out for scammers) (@ JohnEDeaton1) July 19, 2022