David Schwartz indirectly claims that the SEC agency willing to see violation of rules by the crypto companies.
Ripple is a San Francisco-based fintech company that provides cross-border payment services with the help of XRP coin trade liquidity volume without impacting the natural trade price of XRP coin. Ripple Labs is the engineering team behind Proof-of-stake (PoS) XRP ledger. Since Dec 2020, the Ripple team & its executives are in legal hurdles under the jurisdiction of the United States.
Just a couple of days ago, the United States Securities and Exchange Commission (SEC) sent a Wells notice to the Coinbase exchange over the nature of some listed crypto assets & staking services.
On the SEC’s Wells notice, Coinbase chief legal officer Paul Grewal said that SEC should tell the rules and Coinbase will follow them.
Ripple CTO David Schwartz quoted the statement passed by Coinbase’s chief legal officer and said that the SEC agency can’t tell the rules because if they will tell those rules then surely companies will follow.
In this way, Ripple’s CTO indirectly claimed that the SEC agency doesn’t want crypto companies to follow the rules, so that it can further take legal action.
Ripple vs SEC
In Dec 2020, The SEC initiated a legal fight against Ripple labs & its executives over the sale of $1.3 billion worth of XRP tokens publicly.
According to the SEC agency, XRP was an unregistered securities and the company violated securities law by selling the XRP token.
Ripple defence lawyers are doing well in the court, against the SEC agency. From the very beginning, Ripple asked the court why the SEC agency failed to inform Ripple executives of the violation of possible securities laws and why they were silent over the last many years about Ripple’s services.
Read also: SEC agency says Crypto investment offerings may be subject to the federal securities laws