Ripple is not a security in the United Kingdom, Switzerland, Singapore, Japan, the United Arab Emirates.
Attorney John Deaton Suggests that Ripple (XRP) Lawsuit Could End Soon Following Biden’s Crypto Executive Order.
The debate over whether Ripple (XRP) is security has lingered over a year before the Securities and Exchange Commission charged the blockchain company and two of its executives for conducting unregistered securities offerings that saw it raise $1.3 billion.
While Ripple has argued that it took necessary precautionary measures in collaboration with top legal experts before launching the XRP coin, the SEC is convinced that the cryptocurrency company breached its laws via the offering.
Since there is no clear regulation to determine what cryptocurrency should be regarded as a security in the United States, there has been confusion in determining what asset class falls under the jurisdiction of the agency.
The United States SEC is still confident that the cryptocurrency is a security and the company breached its laws by offering XRP to investors without necessary registration.
The SEC’s position on XRP is expected to change in the coming months after the Biden administration’s cryptocurrency executive order mandates all relevant federal agencies to work with United States allies in a bid to develop an international framework for digital currencies.
Attorney John Deaton, a U.S. attorney granted amicus status in the Ripple case, has given an insight into XRP status in other countries considered to be United States’ allies.
Attorney Deaton noted that XRP is not a security in the United Kingdom, Switzerland, Singapore, Japan, the United Arab Emirates, among other countries.
“The [executive order] directs agencies to work with our allies and partners to ensure international frameworks. U.K.’s FCA declared #XRP is non-security. Japan’s FSA declared #XRP a non-security. Switzerland, the UAE, Singapore, and other countries around the 🌎 say #XRP is not a security,” attorney Deaton tweeted.
The EO “directs agencies to work with our allies and partners to ensure international frameworks”
U.K.’s FCA declared #XRP a non-security.
Japan’s FSA declared #XRP a non-security.
Switzerland, the UAE, Singapore and other countries around the 🌎 say #XRP is not a security. https://t.co/2TI9wdYHbI
— John E Deaton (@JohnEDeaton1) March 9, 2022
A statement by national security advisor and NEC director says:
“E.O will help position the U.S. to keep playing the leading role in innovation and governance of digital assets ecosystem at home and abroad in a way, that protects consumers, is consistent with our democratic values, and advance global U.S global competitiveness. ”
Bill a lawyer, digital asset enthusiast comments on the above statement:
“If this statement summarises the objectives of the EO then nothing about the @Ripple lawsuit or Gensler’s approach to Crypto is consistent with these objectives. Where the SEC, by its mission could help – protecting consumers – it failed to do in suing @ripple.”
In the late hours of March 8, U.S. Treasury Secretary Janet Yellen said the department has already begun steps to comply with the White House directive and it is expected that all relevant agencies will also follow suit.
Although Ripple suggested in a recent court filing that the SEC lawsuit could end before November 18, 2022, the case could reach a settlement before the end of the first half of this year if the SEC also follows other U.S. allies to consider XRP as nonsecurity.
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