US Congressman: It’s Altcoin, Securities!

The discussions on this altcoin, whose lawsuit with the SEC continues, does not end. As you know, the SEC claims that Ripple (XRP) is an unregistered security. Now, US Congressman Brad Sherman has also stated that Ripple is a security.

Brad Sherman: This altcoin is an unregistered security As you can follow from the news, the lawsuit between Ripple (XRP) and the SEC is still ongoing. The SEC claims that Ripple is a security and is under SEC supervision. There was a recent congressional hearing on the oversight of the Executive Division of the U.S. Securities and Exchange Commission (SEC). In this session, Representative Brad Sherman said that Ripple (XRP) is a security.

He also asked division manager Gurbir Grewal why the agency does not restrict trading platforms that offer illegal securities such as XRP. Sherman suggested that these trading platforms operate like illegal stock exchanges.

The SEC claims XRP is an unregistered security in its high-profile lawsuit. Therefore, the SEC took Ripple to court in December 2020. The case is expected to be resolved next year. This means that the court has yet to determine the regulatory status of the token.

Due to this lawsuit, the altcoin had a very difficult time and still has not been able to straighten its back. The lawsuit continues to pose a significant hurdle for Ripple. However, the altcoin ranks 6th in terms of market cap. XRP is trading at $0.3725, up about 20% on a weekly basis at press time. On the other hand, it currently stands 90% off from the $3.84 ATH level.

Ripple: SEC harms people, markets and American innovation

Ripple’s general counsel, Stuart Alderoty, disagreed with Sherman’s latest comment, claiming that only the filing of the lawsuit did not actually determine whether the token was truly a security. In this context, Stuart Alderoty made the following statement:

This is the detrimental effect of the SEC’s enforcement approach to regulation. It harms people, markets and American innovation. And it does this with unproven claims that appear to be regulations.

Brad Sherman also demanded the shutdown of the crypto industry!

Following the lawsuit, all major US exchanges, including Coinbase, chose to remain compliant with the regulator. For this, they took action to stop XRP trading. Meanwhile, Brad Sherman is known to be extremely critical of cryptocurrencies. So much so that in 2018 he called for a general ban of cryptocurrencies.

In fact, last June, he called for the shutdown of the crypto industry. Besides, he added that he prefers to let people buy lottery tickets. In December, he criticized Coinbase CEO Brian Armstrong for not attending a crypto-related congressional hearing.

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Larry Brown

I graduated from Yale University, Department of Television. I have been a professional news writer for 3 years. I am continuing my career here by establishing site 3 months ago.