XRP Attorney Criticizes Actions The SEC Is Removing Crypto

Key Points:

• According to the attorney for XRP investors, the SEC is accusing cryptocurrency companies in order to suffocate the industry.
• Attorney for XRP holders and amicus curiae in the XRP litigation John Deaton criticized the SEC’s stance on the cryptocurrency market.
• Stuart Alderoty, General Counsel of Ripple, thinks venture capitalists should challenge the SEC instead of waiting for users to get their money back from the collapsed exchange FTX.

The Securities and Exchange Commission (SEC) of the United States is reportedly going beyond its authority in an effort to exert more control over the digital asset market. The attorney for XRP holders asserted that the SEC is bringing legal action against crypto companies because it wants to suffocate the sector.

The action against LBRY shows the SEC is actively broadening the definition of disgorgement, according to Gabriel Shapiro, General Counsel of Delphi Labs. It aims to consider all LBC token releases as sales.

In the non-fraud lawsuit against LBRY, the XRP attorney is acting abusively. He brought up this as an obvious reference to the SEC’s strategy of putting an end to cryptocurrency. Deaton mentioned the SEC v. KiK summary ruling, in which the commission was unsuccessful in obtaining disgorgement.

The SEC is matching the distribution advantages to profits made on the current LBC spot price, it was further said.

Lawyer for XRP holders and amicus curiae in the XRP litigation John Deaton criticized the SEC’s stance on the cryptocurrency market. He emphasized the claim made by the commission in its objection that all funds raised by the cryptocurrency businesses were used for operations.

Deaton said that the SEC raised disgorgement after these allegations. According to the XRP attorney, under Liu, it is intended to be offset by proper business costs. The watchdog, however, argued that all of the LBRY’s funds were put to use.

Earlier, Stuart Aleroty, General Counsel of Ripple, thinks venture capitalists should challenge the SEC instead of waiting for users to get their money back from the collapsed exchange FTX.

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