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 appears 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 has clearly chosen two winners and ignored a growing and robust 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 within the commodity classification 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 Atrium Foundation and other related companies, persons active in the Ether ecosystem, as well as lawyers and others representing the Atrium Foundation, related companies and individuals active in the ecosystem.
The company 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 the ether is not securities.
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, the issue of time is crucial. Atrium pre-seller years before the SEC report on DAO Done. The SEC announced in a 2017 DAO report that some digital currencies are securities.
After this report, which category of Initial Coins Offerings ICOs) It is considered a securities and which category does not, has caused a lot of confusion. 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 the company's 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, arguing that he wants to exploit US regulators' concerns about China controlling digital currencies. It is almost impossible for the SEC to reverse its numerous statements about the nature of ether as a commodity, and it appears that Ripple intends to strengthen its defenses by undermining the legitimacy of this decision.
The SEC case against Ripple has been going on for a long time, and the company has spent a lot of money 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. The Atrium Foundation, however, is not as influential as Atrium co-founder Vitalik Butrin and Joseph Lubin, an activist in the field.
After the SEC filed a lawsuit against Ripple, the value of XRP Fall And many US exchange offices removed it from their list.
