SEC Doesn’t Agree with Ripple’s Defenses
The trial between SEC and Ripple goes on, and the sides seem to fail finding a compromise. Ripple claims that the accusations from the Commission are unfair because they didn’t warn the exchanges they met about the regulatory status of XRP. In their turn, SEC labeled these claims as improper and accused Ripple in shifting their blame onto the agency. They also say they are not obliged to inform industry participants about the violations as the non-public investigation takes place.
The Commission considers XRP a digital security based on the results of the Howey Test. Courts keep rejecting Ripple’s explanation of it as of the investment contract. They blame Ripple for “capitalizing” their business by selling XRPs.
FinCEN considers XRP a virtual currency, and the SEC doesn’t agree with this term because it rather aligns it with the traditional currencies than with digital securities. They are committed to make Ripple answer in court for not complying with the securities law.