Following the Securities and Exchange Commission’s complaint against Ripple Labs, the XRP token’s developer, several cryptocurrency exchanges have delisted trading in the token this week. Trading in the XRP coin has been halted, according to exchanges and financial websites like Crypto.com, Coinbase, and OKCoin.
The case has undergone numerous developments since then, and the SEC has struggled to effectively defend its conduct. Many people think that Ripple will soon win the legal battle. The community questions whether Coinbase’s decision to delist XRP in 2020 was motivated by a desire to defend its users against “government overreach.”
Additionally, Bitboy crypto added his two cents. Let’s explore.
Ben Armstrong takes a dig at crypto exchanges
Ben Armstrong, the creator of BitBoy crypto, has tweeted about various cryptocurrency exchanges delisting XRP from their platforms. He has stated that if exchanges were brave enough, they would embrace XRP. Furthermore, he has stated that it does not need to be brave to state that, following the $LBRY case, there is now a formal legal precedent that the secondary market does not consist of securities. Only the first transaction may.
If any exchanges had even one ball the size of a pea, then they would relish $XRP
You don’t have to be brave to say that after the $LBRY case there is now official legal precedent that the secondary market does not consist of securities. Only the initial sale may.
— Ben Armstrong (@Bitboy_Crypto) February 12, 2023
LBRY has asked that Coinbase relist XRP. Yesterday, the blockchain team that hosts digital content requested this via a tweet. According to LBRY, applying the criteria in the US Securities and Exchange Commission action against LBRY, XRP sold in secondary markets does not qualify as a security. It should come as no surprise that the tweet generated a rush of similar requests among the XRP community.
John E Deaton Speaks Out
Deaton has discussed his encounter with the SEC in a series of tweets, explaining that the SEC was compelled to acknowledge that XRP is a piece of software. He continued by saying that XRP may be offered and sold as a security, just like gold, bitcoin, and other commodities. What XRP is now is unrelated to whether the creators of Ripple ever broke any securities laws.
Let me quote what we forced the SEC to admit:
“Stripped down, XRP is software code.”
XRP, like gold, #BTC 🦫, 🥃, 🍊 groves, etc., can be offered and sold as a security. Whether the Ripple founders violated securities laws at some point is irrelevant to what XRP is today.
— John E Deaton (@JohnEDeaton1) February 12, 2023
SEC Garners Flack
With Kraken, the Securities and Exchange Commission has reached a $30 million settlement that would compel the company to end a program that offered investment returns to US users who committed their digital assets to the company.
Paxos Trust Co., a cryptocurrency company, has been informed by the Securities and Exchange Commission that it will be sued for breaking investor protection rules.
Furthermore, it has been noted that Gary Gensler, the chairperson of SEC is motivated to bring all crypto under his control and has brought about a multitude of enforcement actions.
🚨SCOOP: @GaryGensler is embarking on a “midnight massacre” in an attempt to bring all of #crypto under his control. In the coming weeks, the @SECGov, @NYDFS and the @USOCC will be bringing a myriad of enforcement actions against exchanges, banks
— Eleanor Terrett (@EleanorTerrett) February 9, 2023