You are probably aware by now of the SEC’s lawsuit against Ripple. It’s been just revealed that Kraken CEO and co-founder Jesse Powell is featuring that the case could harm the whole crypto space.
He warned on Twitter that crypto exchanges might be put at risk as a side effect of the SEC’s legal battle with the digital payments firm.
Huge asymmetrical risk for exchanges. Have to assume SEC’s case is in good faith. Judges tend to side with agencies. If XRP found to be a security, SEC would say that exchanges should have known. Safe harbor pending outcome would have been responsible if only purpose is to “test” https://t.co/KnA71Bebg0
— Jesse Powell (@jespow) March 6, 2021
Someone said: “How did anyone with a brain not know XRP was unregistered security, sincerely? If the US has rule of law, exchanges who participated probably need to pay up.”
Another follower posted this: “how about the policy “in case of doubt, don’t list”? it would’ve worked pretty well, mate.”
Someone else posted this: “You’re apparently not understanding what’s happening here. The SEC’s action includes all crypto. There would be no exchanges in the United States because there would be no crypto‘s you can list.”
Update on Tetragon’s Series C shareholder suit
Ripple’s Ripple general counsel Stuart Alderoty had something to say about all this:
“Update on Tetragon’s Series C shareholder suit: the Judge ruled that since there has been no official determination regarding XRP’s status, Tetragon’s claim that a securities default occurred is wrong…” he said.
He continued and said: “The Tetragon ruling, coupled with the SEC’s filing in @JohnEDeaton1’s case, should put to rest the FUD that the SEC unilaterally determined that XRP is a ‘security.’ Glad that’s settled!”
Ripple CEO Brad Garlinghouse and exec chairman Chris Larsen are planning to request the US SEC and Exchange Commission’s charges against them be dismissed.
Stay tuned for more news.