KYC for Large Crypto Holders: Ripple Lawyer Criticizes SEC’s Targeting of Company’s Transparency
John Deaton, a lawyer representing XRP holders, has accused the SEC of strategically using Ripple’s commitment to transparency against the company and its CEO, Brad Garlinghouse. Deaton made these comments in response to a tweet about Know Your Customer (KYC) systems in the crypto space. He agreed with the idea that large token holders should be required to disclose their ownership and control of a project’s token supply, similar to the transparency requirements of 13D filings. Deaton highlighted how Ripple and Garlinghouse implemented a cryptographic escrow and published quarterly XRP reports to uphold transparency, but the SEC used this against them. He also mentioned how the SEC acknowledged its awareness of the number of tokens owned by Ethereum’s founding members but couldn’t recall the exact percentage. This suggests that the SEC targeted Ripple unfairly, taking advantage of its commitment to transparency.
Key Points:
– Large token holders should disclose their ownership and control of a project’s token supply.
– Ripple and Garlinghouse implemented a cryptographic escrow and published quarterly XRP reports to uphold transparency.
– The SEC used Ripple’s transparency against them, targeting the company and its CEO.
– The SEC acknowledged its awareness of the number of tokens owned by Ethereum’s founding members but couldn’t recall the exact percentage.
– The SEC unfairly targeted Ripple, taking advantage of its commitment to transparency.
Hot Take:
The SEC’s actions against Ripple and its CEO seem to contradict the importance of transparency in the crypto space. By leveraging Ripple’s commitment to transparency, the SEC undermined the company and its efforts to comply with regulations. This raises concerns about the regulatory environment and the potential for unfair targeting of crypto projects.
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