Ripple Vs SEC: Crypto Exec Sounds Alarm for Ripple: No Chance of Winning Against SEC
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As Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC) continues, Gene Hoffman, president of the Chia Network, has expressed his lack of confidence in the company’s ability to win the case. In a Twitter thread, Hoffman stated that Ripple made a mistake by selling XRP before registering Ripple stock and that this would be a key factor in their defeat.
XCH is not a security. We’re going in to register Chia equity. Which is the obvious way to be legal that everyone else just doesn’t want to do.
— Gene Hoffman hoffmang.xch(@hoffmang) February 27, 2023
Hoffman responded to a Twitter user’s sarcastic comment about Chia’s superiority to Bitcoin in response to SEC Chair Gary Gensler’s recent statement that all cryptocurrencies apart from Bitcoin are securities. Hoffman clarified that Chia’s token, XCH, is not a security and that the company plans to register Chia equity to ensure legality.
SEC Arguments Against Ripple
No, the SEC is saying that when Ripple sold XRP without a registration statement that was either an investment contract or a securities scheme – both clearly covered by the ‘33 and ‘34 Act. I wouldn’t be surprised if they prevail that after that sin, 2ndry sales remain securities
— Gene Hoffman hoffmang.xch
Matt Hamilton, Ripple’s former director of developer relations, pointed out that registering equity did not stop the SEC from going after Ripple. He warned Hoffman to keep a close eye on the Ripple case, as the SEC is trying to argue that secondary market sales can also be securities. However, Hoffman stated that the Chia company owns XCH but has never sold any tokens, and all the trading of XCH has been “from farmers farming.”
Ripple has been locked in a legal battle with the SEC since December 2020, when the regulator filed a lawsuit accusing Ripple and its executives of selling unregistered securities in the form of XRP. The company has vehemently denied the charges, and the legal proceedings have had little to no effect on XRP’s market value.
XRP Price
On Sunday, XRP Price rose by 0.02% but ended the week down 2.11% to $0.37794. After a range-bound morning session, XRP fell to a late afternoon low of $0.37500. Although it rose to a late high of $0.38055, it came up short of the First Major Resistance Level (R1) at $0.3816 and fell back to end the day at sub-$0.38. At press time, XRP is worth $0.376.
