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- A reporter at Fox Business states just because Ripple didn’t stop selling XRP after the SEC lawsuit, the company is facing issues.
- The crypto community points out the reporter’s fallacy of comparison with the Ethereum Foundation.
The debacle of the crypto exchange FTX has got regulators worldwide on their toes. Besides, the FTX contagion is widespread and has been impacting a number of crypto firms in the industry. But despite all this chaos in place, the U.S. Securities and Exchange Commission has decided to prioritize its battle with Ripple and is heading towards an anticipated summary Judgment.
In his tweets on Wednesday, January 4, Charles Gasparino, a journalist at Fox business released some undisclosed details in the XRP lawsuit. He said that he’s conducting a thorough review of the Ripple vs SEC lawsuit but goes on to question why the commission was so focused on the XRP lawsuit instead of paying attention to FTX.
In his report, Gasparino notes that the commission believes that the Ripple management was flouting the SEC authorities by continuing to sell XRP. This happened even as the SEC issued a notice to Ripple to stop the sale. He notes that the commission was keen to establish XRP as a security based on how Ripple was selling their native digital asset.
However, the Fox Business reporter added that the Ethereum Foundation faced a similar situation with the SEC and stopped later. “Not picking sides; just reporting why case was brought,” he adds.
Ripple General Counsel Hits Back
Gasparino’s comments didn’t go well with the XRP community which has hit back at Charles Gasparino adding that the reporter’s statements are not entirely correct. Many pointed out that similar to ripple, the Ethereum Foundation launched one ICO and continued to sell ETH thereafter. Besides, many also pointed out that the Ethereum Foundation unloaded millions of ETH tokens during the top of the 2017 bull run.
One user @801_XRP wrote: “Charles has drank the koolaid don’t know if @FoxBusiness will be reliable news anymore just another CNBC. regardless of what they were told and what they did. pay a fine and move on. The proof that ripple and XRP will play a major part in the global financial system is there”. Commenting on this coverage by Gasparino, ripple General Counsel Stuart Alderoty noted:
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.
It’s been two years since Ripple and the SEC are engaged in a long legal battle. Market analysts believe that Ripple is getting closer to winning this battle and probably the case could come to conclusion this year in 2023.
