Wednesday, October 5, 2022
HomeCrypto NewsMarketU.S. Rep. Brad Sherman Says SEC Will Win the Lawsuit Against Ripple,...

U.S. Rep. Brad Sherman Says SEC Will Win the Lawsuit Against Ripple, XRP Enthusiasts React

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The U.S. Congressman is still backing the SEC to win the lawsuit against Ripple.

In a recent FOX Business interview, U.S. Rep. Brad Sherman reiterated further that the Securities and Exchange Commission should also clamp down on U.S.-based exchanges that facilitated Ripple (XRP) trading. 

Rep. Sherman told FOX Business journalist Charles Gasparino that he is confident the SEC would win the case against Ripple because XRP is a security.  

He added that he has been in contact with SEC chair Gary Gensler and the agency’s Enforcement Director Gurbir Grewal to expand the Ripple lawsuit to also include exchanges that facilitated the trading of XRP. 

Why Sherman Thinks, XRP Is A Security

Attorney Jeremy Hogan, a partner at Hogan & Hogan law firm, marveled at how Sherman concluded that XRP is security since the court ordered both parties not to share evidence with third parties. 

Responding to attorney Hogan’s tweet, Eleanor Terrett, a FOX Business journalist, said Rep. Sherman is confident about XRP being security based on “the reasons outlined in the SEC’s position.” 

Sherman added that XRP investors relied on Ripple to boost the price of the cryptocurrency, thus making the coin a security. 

Furthermore, Sherman noted that U.S.-based exchanges de-listing XRP immediately after the SEC slammed the charges against Ripple, which is another proof that the cryptocurrency is a security. 

“[Exchanges] also concluded that XRP is a security too,” Sherman added. 

Recall that Rep. Sherman had recently called on the SEC to clamp down on exchanges involved in facilitating the trading of XRP before the Ripple lawsuit. 

He made the statement during an oversight hearing for the SEC Enforcement Division. 

The division has determined that XRP is a security and is going after XRP but, for reasons that I’ll bring up in question, has not gone after the exchanges where tens of thousands of illegal securities transactions were occurring,” Rep. Sherman said at the time. 

Reactions Trail Rep. Sherman’s Comment

His comments had previously sparked reactions from top Ripple executives, including the company’s CEO, Brad Garlinghouse. 

Garlinghouse noted that Sherman is trying to advance a political agenda over sound policy while ignoring the law. Ripple’s General Counsel, Stuart Alderoty, also slammed Rep. Sherman for calling on the SEC to clamp down on exchanges that facilitated XRP trading. 

Aside from Ripple’s top executives, attorney John Deaton, who was granted Amici status in the lawsuit, also aired his opinion on the statement made by Rep. Sherman. 

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Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.


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