Ripple has asked the Securities and Exchange Commission (SEC) to explain why they consider XRP to be securities but not securities ether, citing the Freedom of Information Act.
To Report Ripple Labs’ Kevin Telegraph filed its response to the US Securities and Exchange Commission on January 29, and the company’s claim against the SEC is expected to have a major impact on the industry.
Ripple, as before, has argued that the XRP token is not a security and therefore does not fall within the SEC’s jurisdiction. In addition, Ripple is ready to involve other companies in the industry in its fight in this case.
An Ripple representative said in an interview:
The SEC is clearly two [ارز دیجیتال] It has chosen the winner and ignored a strong and growing industry that is much larger than Bitcoin and Ether. In addition to pursuing the request for evidence in the preliminary hearing, we have filed a request under the Freedom of Information Act, asking the SEC to explain how it has recognized ether as non-securities.
Ripple’s request calls into question the legal status of ether. SEC officials have repeatedly said of Ether that although its forerunner was securities at the time, the token is so decentralized that it falls into the commodity category and falls within the remit of the US Commodity Futures Trading Commission (CFTC).
Ripple has requested that all documents relating to SEC contacts and correspondence with the Ethereum Foundation and other related companies, persons active in the Ether ecosystem, as well as lawyers and others representing the Ethereum Foundation, related companies and individuals active in the ecosystem.
The company has also asked the SEC to provide Ripple with all documents, including internal contacts and correspondence, analysis and other items used by the regulator’s management and experts to conclude that it is not securities ether.
Such a request includes a large amount of registered documents that have been used by the SEC for several years in the process of reviewing the ether status.
When it comes to deciding whether to recognize ether as a security or commodity, time is of the essence. The Ethereum pre-sale took place years before the SEC report on the DAO was published. The SEC announced in a 2017 DAO report that some digital currencies are securities.
Following this report, it has become very confusing which category of ICOs is considered and which category is not. Remarkably, Bitcoin, which had no pre-sales, was never involved in these discussions. Although the SEC has never prosecuted Ether, it filed a lawsuit against Ripple in December, claiming that its sale of XRP included the sale of investment contracts.
Ripple relies heavily on the claim that bitcoin and ether are both controlled by mining companies based in China, and argues that it intends to exploit US regulators’ concerns about China controlling digital currencies. It is almost impossible for the SEC to back down from its numerous statements about the nature of ether as a commodity, and it seems that Ripple intends to strengthen its defenses by undermining the legitimacy of this decision.
The SEC case against Ripple has been on the table for a long time, and the company has incurred significant costs to delay it. Although the release of XRP preceded the DAO report, the main argument is that Ripple still controls a significant portion of the token market. Ethereum Foundation, however, is not as influential as Ethereum co-founder Vitalik Butrin and Joseph Lubin, an activist in the field.
The value of XRP fell after the SEC filed a lawsuit against Ripple, and many US exchanges removed it from their list.