Journalist, blogger and panelist of Fox Business Charles Gasparino has shared the "autopsy" of the SEC regulator's long-lasting case against blockchain giant Ripple that he is working on at the moment.
Gasparino believes he has found the actual reason why the securities regulator has been so persistent in accusing the crypto behemoth of selling XRP tokens as unregistered securities.
So far, he has gotten responses from Ripple's Stuart Alderoty and founder of CryptoLaw, who has been closely following the case, supporting Ripple.
"The answer to the SEC vs Ripple case" from Gasparino
The journalist stressed that, right now, it is particularly important to pay attention to the real reason why the SEC went at Ripple and is striving to beat it in court, since the SEC recently accused the founder of battered FTX exchange Sam Bankman-Fried of defrauding investors via the FTX exchange.
Charles Gasparino pointed out that this case may help to clarify why the regulatory agency focused on Ripple in the first place. He stated that based on his earlier reporting, the SEC decided that Ripple was flouting its authority because the crypto company continued to sell XRP tokens despite warnings to stop from the SEC. "The way it was being sold seemed to establish #XRPs designation as a security," Gasparino explained.
He also mentioned the case of Ethereum which, just as Bitcoin, was classified as a commodity, stating, "Ethereum did possibly one sale and stopped. No case." The journalist assured his followers that he is not taking sides in the Ripple-SEC legal battle but simply reporting why the case began in the first place, as he sees it.
(2/2) SECs authority by continuing to sell #XRP after on notice to stop because the way it was being sold seemed to establish #XRPs designation as a security. Notice: @ethereum did possibly one sale and stopped. No case. Not picking sides; just reporting why case was brought— Charles Gasparino (@CGasparino) January 4, 2023
Ripple's Stuart Alderoty responds
General counsel of Ripple Stuart Alderoty could not but comment on that short thread of Gasparino. He stated that if the reason named by the journalist is true, the SEC is still acting as if they had unlimited power to discriminate and punish those "who don't blindly obey." He added, "We have crossed from regulation by enforcement to hubris most foul," he added.
Even if true, this only shows that the SEC’s unelected bureaucrats believe they have unchecked power to issue indiscriminate closed door edicts under pain of punishment to those who don’t blindly obey. We have crossed from regulation by enforcement to hubris most foul. https://t.co/eT5tStXM6E— Stuart Alderoty (@s_alderoty) January 4, 2023
CryptoLaw founder John Deaton also stepped in to comment on Alderoty's tweet. Deaton shared the thesis that had been many times voiced by the XRP army — the SEC, he believes, claiming to protect investors, XRP holders in this particular case — has caused them "maximum pain." These people, he added, had nothing to do with "Ripple allegedly flaunting the SEC's authority," he wrote in the tweet.
As reported by U.Today, earlier this week, the founder of CryptoLaw also stated on Twitter that investors still care about XRP, naming a few reasons for that: this token was the third one from 2015 until 2020, and it remains on the top ten list of cryptos after the SEC began claiming that it is an unregistered security.