Other than Ripple and its employees, no investors, exchanges or other platforms violate the US Securities and Exchange Commission (SEC) guidelines by selling XRP tokens. This was stated by the regulator’s lawyer in court, said lawyer Jeremy Hogan.
He called this statement one of the “exploding surprise bombs” during the hearings.
As promised, stayed up late to shoot the video on today’s bombshell dropping discovery hearing. Enjoy and I am going to sleep! https://t.co/CcEQoM0TKe
– Jeremy Hogan (@attorneyjeremy) March 20, 2021
Justice of the Peace Sarah Netburn asked a Commissioner if everyone who sold the tokens was breaking the law.
“No, under section 4, only Ripple and its affiliates can illegally sell XRP,” Hogan quoted Hogan as saying.
In his opinion, the statement of the SEC lawyer opens up an opportunity for sites that had previously suspended trading in an asset to resume its support.
The second key moment of the court hearing, Hogan called the judge’s opinion that, in her understanding, XRP is not only a monetary unit, but differs from Bitcoin and Ethereum in the presence of “utility”.
The SEC filed a lawsuit against Ripple in December 2020. The regulator accused the company, its CEO Brad Garlinghouse and co-founder Chris Larsen, in an unregistered sale of securities worth $ 1.3 billion in the form of XRP.
In February, the Commission filed a revised version of the statement of claim , focusing on the actions of Larsen and Garlinghouse. The SEC believes that they manipulated the price of the asset and personally received $ 600 million from sales.
Earlier, the regulator asked six banks for data on the personal financial transactions of the firm’s executives over the past eight years.
Recall that after accusations of Ripple by the SEC, XRP trading for US residents was suspended by the Galaxy Digital , Bitstamp and B2C2 platforms , as well as the Coinbase and OKCoin exchanges . A similar decision was made by the trading platforms Kraken and PayBito .