Cryptocurrency-friendly US Congressman Tom Emmer (R-MN) recently accepted an interview with Thinking Crypto in which he shared some of his views on the SEC and Ripple cases.
The Ripple Lawsuit Can create or Destroy the Cryptocurrency Industry
Republicans in Minnesota pointed out that the SEC complaint against this financial technology company could have a significant impact on the entire cryptocurrency industry.
XRP’s regulatory status has undergone rigorous scrutiny in recent years, with the U.S. Securities and Exchange Commission filing a violent lawsuit against Ripple and its two top executives in December, alleging that they raised more than $1.3 billion through an unregistered securities offering in 2013. As the case continues crypto enthusiasts are paying close attention because it has the potential to set legal precedents in several key areas.
“The ruling can have a significant impact on the market,” Emmer told host Tony Edward while avoiding discussing the possible outcome of a high-risk lawsuit, as only the federal court can resolve differences between the government and Ripple.
Emmer believes that enforcement actions like the SEC’s are not the best way to remove regulatory uncertainty. Instead, elected leaders should have productive conversations with crypto industry lobbyists.
Last August, members of the US Congress believed that XRP was not a security. Just a few months ago, the US Securities and Exchange Commission sued Ripple, accusing the tokens of unregistered securities. Emmer is not the only one to take a position on XRP; former CFTC chairman Chris Giancarlo also stated in June 2020 that XRP did not meet the criteria for classification as a security.
Likewise, Emmer, other observers have already described the SEC-Ripple dispute as a case that will determine the fate of the XRP token and shape the future of the entire cryptocurrency industry by determining whether crypto-assets should be treated as stocks.
It’s worth noting that Ripple has chosen the route of open disputes with regulators rather than privately settling and ending the ongoing legal scuffle. The U.S. Securities and Exchange Commission recently requested Ripple’s Slack notices, and regulators believe this could lead to new developments.
“Ripple’s data error and refusal to produce most documents have already been highly prejudicial to the SEC. Among other things, the SEC has deposed 11 Ripple witnesses using incomplete records of their communications.”
For the SEC, more than 1 million Slack messages are not only critical to creating accurate and complete summary judgment and trial records but also refresh the memory of Ripple employees who did not speak during their testimony.
All in all, US lawmakers are particularly flexible when it comes to crypto legislation. This means that the regulatory clarity that has long been demanded by the crypto world in the form of a ruling in the SEC vs Ripple can come.