Ripple On The Brink Of Losing A Lawsuit Against Sec- Brad Sherman

Brad Sherman, Congress leader, believes that Ripple will not be able to defend its case in front of the SEC.

Brad Sherman, congress leader, in an interview with FoxBusiness, mentioned that he believes that SEC(Security and Exchange Commission) will survive in its authorized struggle again Ripple in a lawsuit that is based on whether XRP should be treated as a security or not and he also believes that XRP is a security and that therefore the payment giant doesn’t stand a chance against the Ripple.

In the case against Ripple, The Security and Exchange Commission blamed that XRP native of Ripple is not registered as a security. The SEC also alleged that two officials of Ripple Labs, Brad Garlinghouse and Chris Larsen, collected $1.3 billion US dollars by selling XRP Tokens.

Sherman was the one who raised his voice for the ban of cryptocurrencies long back in 2018 but now he thinks that XRP is a security. Eleanor Terrett, a journalist and producer at Fox Business questioned about the same to Sherman and posted on her twitter handle.

When I asked Rep. Sherman why he thinks $XRP is a security he told me "for the reasons set forth in the SEC's position" and went on to explain that XRP investors relied on @Ripple efforts to bump up the price. He then said the proof that he's right stems from the crypto exchanges https://t.co/D1fuwsIlZZ
— Eleanor Terrett (@EleanorTerrett) July 20, 2022

Chart Analysis

After reversing from the bears’ hedge zone (red box), the XRP seems to be slightly bearish while it is trading below the 20-day moving average. However, there is no major drop in XRP price, but it seems crypto may revisit the ascending trendline (white) ahead.

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Many investors believe that prices of XRP may take a U-turn and are likely to gain prices in the market again.

Sherman questioned SEC division director of Gurbir Grewal “If XRP is a security why are these crypto exchanges not in violation of law?”

Defending SEC Grewal replied that the commission had pursued the Delaware-based exchange poloniex in 2021. Sherman again crossed their reply and stated, “It’s easier to pursue small fish than large ones.”

On 8th August, The Coin Republic reported that Solicitors of Ripple group recently filed a plea charging The Security and Exchange Commission with quelling and forcing the company.

The legal process between SEC and Ripple started long back in 2020, and it has been approximately two years, and the decision on the case is still pending. And daily, a piece of new information comes into the limelight regarding cases.

Source: https://www.thecoinrepublic.com/2022/08/10/ripple-on-the-brink-of-losing-a-lawsuit-against-sec-brad-sherman/