SEC Lawsuit Against Kraken Doesn’t Include XRP: Legal Expert
The recent lawsuit filed by the United States Securities and Exchange Commission (SEC) against cryptocurrency trading platform Kraken has raised eyebrows among legal experts. Jeremy Hogan, a lawyer closely following the SEC’s case against Ripple, pointed out that the lawsuit did not mention XRP as one of the alleged securities. In a tweet on November 21, Hogan shared the list of cryptocurrencies mentioned in the lawsuit, which included Cardano, Axie Infinity, Algorand, and others.
The SEC claimed that these cryptocurrencies were offered as “crypto asset securities” and had been subject to regulatory actions against other unregistered intermediaries like Bittrex, Binance, and Coinbase. However, XRP was notably absent from the list.
Why XRP is Not Included
It is important to note that in a ruling on July 13, 2023, Federal Judge Analisa Torres determined that Ripple’s sales of XRP to retail customers did not constitute securities sales. This ruling provided a partial victory for Ripple, although settlement talks regarding fines for sales to institutional clients are still pending.
The SEC is seeking damages from Ripple for its sales of XRP to institutional customers both in the US and overseas. Legal expert John E. Deaton referred to this demand as the “$770 million worth of flesh.” Ripple is currently trying to reduce this amount.
As of November 24, XRP was trading at $0.6248 with a 1.08% increase in the last 24 hours and a 13.81% increase over the past month.
Hot Take: SEC Lawsuit Raises Questions About XRP’s Status
The exclusion of XRP from the SEC’s recent lawsuit against Kraken has sparked speculation about the legal status of the cryptocurrency. While other cryptocurrencies were listed as alleged securities, XRP was conspicuously absent. This omission may indicate a shift in the SEC’s approach to XRP, considering the previous ruling that sales to retail customers did not constitute securities sales. Ripple and XRP investors will be closely watching the outcome of the ongoing legal battle and the potential impact on the cryptocurrency’s value and regulatory standing.
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