SEC’s crackdown on XRP faces challenges as past contradictions and undisclosed documents emerge, impacting the outcome of the Ripple lawsuit, according to Forbes contributor.
In a recent analysis, Sam Lyman, a well-respected contributor at Forbes, suggests that the Securities and Exchange Commission (SEC) may have bitten off more than it can chew in its ongoing campaign against XRP, the digital asset associated with Ripple.
The SEC may have bitten off more than it can chew in its campaign against XRP.
In my latest piece for @ForbesCrypto, I discuss how the "Ripple effects" from this lawsuit could benefit not just the #XRPArmy but also @Coinbase & the industry as a whole.https://t.co/hml3wYE5IK
— Sam Lyman (@SamLyman33) May 21, 2023
Lyman emphasizes that the SEC’s crackdown on the crypto industry continues, with SEC chairman Gary Gensler accusing the sector of lacking regulatory compliance rather than regulatory clarity.
However, the agency’s efforts to classify digital assets as securities and subject them to securities law are now being challenged by an unexpected adversary—the SEC’s own past statements and internal documents.
Lyman highlights that the weight of the contradictions between the SEC’s current positions and past statements and actions is becoming increasingly apparent to the court. Consequently, the SEC has been attempting to conceal the documents in its lawsuit against Ripple.
However, a federal judge recently ruled that the documents must be publicly available, as previously reported by The Crypto Basic. This ruling is seen as a significant win for Ripple and potentially an even bigger victory for the entire crypto industry.
Notably, the disputed documents include the infamous Hinman speech, which Judge Torres has described as “judicial documents,” indicating that she may rely on them when delivering her final decision.
Pro-XRP Lawyer Weighs In
Moreover, a prominent pro-XRP lawyer, John Deaton, argued several reasons why the SEC finds itself in this challenging position, pointing out that the lawsuit goes beyond simply enforcing U.S. securities laws.
According to him, the lawsuit would have focused on specific sales made by Ripple, and a settlement might have been reached by now. Instead, Deaton suggests that the suit was wielded as a weapon with questionable motives.
He highlights that even Joe Grundfest, a highly respected former SEC Commissioner, has raised doubts about the SEC’s underlying motive behind filing the case.
Conclusively, Deaton highlights the unexpected strength and unity of the XRP Army, a dedicated community of XRP proponents. He notes that approximately 75,000 people from this community have come together to support Ripple, which has likely caught the SEC off guard.
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