Ripple Wins Access to SEC Internal Crypto Discussions Regarding Bitcoin & Ether’s Non-Security Status
San Francisco-based startup Ripple has been granted its request for discovery regarding SEC determining Bitcoin and Ether not securities in a Telephone discovery conference held on April 6th, 2021.
In this “high-stakes” discovery win, U.S. Magistrate Judge Sarah Netburn said, “I’m going to grant in large part the defendants’ motion.”
The SEC argued that it is not relevant and would be a burden to look into all the documents requested by Ripple and that internal communications have no relevance to XRP.
Ripple, however, said that Ether has had an ICO as well but is not deemed a security and that XRP can compare to both the assets in certain cases. SEC has provided no clarity whatsoever on what is considered a security, it further said.
The company basically wants to know why Bitcoin BTC -0.43% Bitcoin / USD BTCUSD $ 35,600.50
-$153.08-0.43% Volume 35.7 b Change -$153.08 Open $35,600.50 Circulating 18.73 m Market Cap 666.92 b 11 h Bitcoin Taproot Upgrade Officially Locked in For November Activation 11 h Cryptocurrency Mining Bill Dies Down After New York Union 'Opposes' 13 h Senator Ted Cruz: Investors Attracted to “Bitcoin as a Hedge” Against Inflation Due To Biden’s $7T Spending and Ether ETH 5.83% Ethereum / USD ETHUSD $ 2,404.35
$140.175.83% Volume 25.41 b Change $140.17 Open $2,404.35 Circulating 116.27 m Market Cap 279.55 b 13 h The May Crypto Sell-off Predominantly Occurred in the US Session 1 d Best Cryptocurrencies with Growth Potential to Buy In June 1 d Polygon And 0x Team Up to Devote $10.5 Million Into Attracting New Users & Developers are not classified as a security while arguing that the XRP has grown to the point that it is not a security.
In its defense, the SEC said, the 2018 speech, which categorized the top two crypto-assets as not a security, was not an official position. Stuart Alderoty, General Counsel Ripple tweeted,
“In January, we asked, “How does the SEC explain telling the public that BTC and ETH are not securities, then turning around and alleging the opposite is true for XRP?” Perhaps we'll start to get some answers now.”
Today was a good day.
— Brad Garlinghouse (@bgarlinghouse) April 6, 2021
At the time, Ripple said the SEC is picking winners and losers. “There is no principled distinction between XRP’s current function and that of BTC or ETH,” said the company.
The crypto community is not impressed with Ripple constantly targeting Bitcoin and Ether not only for their categorization but consistently trying to put down the trillion-dollar asset by saying it is China-owned and that Bitcoin transactions are emitting the same amount of CO2 as 75 gallons of gasoline being burned.
“BTC is an exceptional store of value. It’s just not ideal as a payments mechanism,” Ripple CEO Brad Garlinghoue in a recent interview.
On SEC’s lawsuit against the company, he stated, “Ripple and I have been more transparent than anyone else in the crypto industry about our activity.”