[ccpw id="39382"]

HomeCrypto NewsMarketPrometheum Founder Says SEC Will Win Ripple Lawsuit, XRP Community Reacts

Prometheum Founder Says SEC Will Win Ripple Lawsuit, XRP Community Reacts


Written By:

Latest News

Aaron Kaplan, founder of Prometheum, anticipates a final verdict in favor of the SEC against Ripple.

- Advertisement -

Aaron Kaplan, founder and co-CEO of crypto broker Prometheum, has recently thrown his weight behind the United States Securities and Exchange Commission. In a recent interview, Kaplan said the U.S. SEC would win its case against leading blockchain company Ripple.

“I anticipate the SEC will win this [Ripple] case as every indication points to a decision in the commission’s favor,” Kaplan said to host Bobby Del Rio in an episode of the Daily Drop show.

- Advertisement -

According to Kaplan, the ongoing Ripple lawsuit is similar to the SEC’s case against open-source content distribution company LBRY.

Kaplan noted that the judge in the LBRY lawsuit ruled that the company violated securities laws by selling LBRY Credits (LBC) without registering with the commission. He added that the facts in the ongoing Ripple case are similar to the LBRY lawsuit, so he expects the same outcome.

XRP Community and CryptoLaw React

As expected, this projection from Kaplan has elicited reactions from all corners of the XRP community. Most community members have swiped at the Prometheum co-CEO, with some asserting that Kaplan is biased because he did not highlight the difference between LBRY and Ripple lawsuits.

- Advertisement -


Interestingly, CryptoLaw, a U.S. legal and regulatory news outlet for digital assets founded by attorney John Deaton, also shares the same sentiment.

According to CryptoLaw, Kaplan is only focused on cheering the SEC as he does not seem to understand anything about the Ripple lawsuit.

“Very odd. Nothing about the cases he cited nor even the Hinman speech itself or the warnings he got from the SEC staff about the speech support the notion that the token is a security,” CryptoLaw noted.

Kaplan Supports Gensler’s Regulatory Policies

It bears mentioning that Kaplan has continued to throw his weight behind the U.S. SEC’s approach. Kaplan, who spoke before the House Financial Services Committee earlier this week, broadly supported SEC Chair Gary Gensler’s regulatory policies.

Notably, the Congressional hearing, held on June 13, saw testimonies from insiders and experts about the most appropriate way to regulate the digital assets markets.

Interestingly, Kaplan was the final witness on the lineup. Contrary to the opinion of other witnesses, Kaplan echoed support for Gensler, stating that existing securities laws are adequate to regulate the crypto industry.

Kaplan’s testimony in favor of the SEC attracted lots of attention to him and his company. Based on his growing popularity, Blockchain Association filed a Freedom of Information Act (FOIA) request with the SEC yesterday, seeking Prometheum-related records.

Follow Us on Twitter and Facebook.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

More from Author