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Ripple’s Lawyers Dispute SEC’s Classification of XRP as a Security, Citing Government Agency Statement

recently twitter thread, Ripple advocate John Deaton has presented a strong case arguing that the U.S. Securities and Exchange Commission (SEC) is wrong in tagging the XRP coin as a security.

I challenge anyone reading this 🧵 to defend the actions and actions of the SEC.

Deaton disputes the SEC’s allegations, citing a 2018 statement by the SEC’s director of corporate finance, Bill Hinman. To Non-Users – By Promoter. ”

Deaton argued that this was not the case for XRP holders, many of whom acquired coins to establish a TrustLine on XRPledger for value transfer or to pay salaries through BitPay and other vendors. .

Deaton also pointed to the SEC’s own framework for digital assets, stating, “A cryptocurrency satisfies the Howey test (a test to determine whether an asset is a security) if it can be readily used to make payments in a variety of circumstances. It’s unlikely,” he said. or act as a substitute for real (or fiat currency). ”

Ripple XRP and Other Government Agencies

Lawyers highlight statements from other government agencies, including the U.S. Government Accountability Office (USGAO) and FinCEN, which have classified XRP as a cryptocurrency.

Also, in the FSOC annual report 🇺🇸 signed by the most important financial leaders in the US in 2019, #BTC, #ETH, #XRP and #LTC are the only cryptocurrencies with growing market share. Consider what was emphasized. https://t.co/NFVZ14Gtda

He also refers to the 2015 settlement between Ripple and FinCEN and DOJ. The settlement would force Ripple to comply with banking laws, not securities laws, and would require the company to hire an independent third-party auditor to provide the government with an annual audit of all sales of XRP. was. 5 years.

Noting that SEC staff were allowed to own and trade XRP until April 2019, Deaton argues that the SEC’s approach to cryptocurrencies is inconsistent and contradictory.

When MoneyGram filed a disclosure with the SEC in 2019 informing it that Ripple planned to transfer XRP for use in its cross-border payment business, the agency took no action.

He also suggests that there is other non-public information that further supports Ripple’s claims. John Deaton said:

What I described above is public. Non-public information is not considered. Now, wait for Hinman’s email and draft of his speech to arrive.

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https://www.tronweekly.com/ripple-lawyer-challenges-sec-classification-xrp/ Ripple’s Lawyers Dispute SEC’s Classification of XRP as a Security, Citing Government Agency Statement

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