Harming XRP Holders
Newly revealed documents show that a former commissioner of the United States Securities and Exchange Commission (SEC) urged against suing blockchain company Ripple. Joseph Grundfest, a professor at Stanford Law School and former SEC commissioner, warned that the lawsuit would have widespread implications. In a letter from December 2020, Grundfest stated that the case would impact the nation’s financial and securities markets. He also argued that innocent holders of XRP would suffer harm due to reduced liquidity and declining value caused by intermediaries ceasing to transact in XRP.
Giving ETH a Free Pass?
Grundfest also questioned the motives behind the lawsuit, suggesting that Ethereum (ETH) had received preferential treatment from regulators. He argued that there was no material distinction between Ether and XRP regarding the application of federal securities laws. Grundfest called for equal treatment, allowing XRP to trade freely if Ethereum was afforded the same privilege. He emphasized that any other approach would create an unfair imbalance in enforcing securities laws.
The price of XRP at the time of writing is $0.5578, with a daily increase of 0.96%, weekly gains of 6.12%, and monthly gains of 7.82%.
Hot Take: Former SEC Commissioner Urged Against Suing Ripple, Citing Widespread Implications
Recently revealed documents show that a former SEC commissioner, Joseph Grundfest, pleaded with former SEC Chair Jay Clayton not to sue Ripple, warning about its potential consequences. Grundfest argued that innocent holders of XRP would be harmed by reduced liquidity and declining value if intermediaries stopped transacting in XRP due to legal risks. Additionally, he questioned why Ethereum seemed to receive preferential treatment while XRP faced scrutiny from regulators. Grundfest called for fair enforcement of securities laws and equal treatment for both cryptocurrencies. These revelations shed light on the behind-the-scenes discussions and concerns surrounding the SEC’s lawsuit against Ripple.
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