Brad Sherman Says SEC Should Sue Everyone Who Traded XRP
The oversight work of the US Securities and Exchange Commission, the SEC, faces challenges before the US Congress. One congressman in particular is pushing for more legal action against cryptocurrency exchanges.
Recently, a congressional subcommittee held an oversight hearing focused on the oversight division of the SEC. The hearing was attended by SEC director Gurbir Grewal, responsible for answering congressional questions.
“The division faces new challenges in the form of cryptocurrencies and other digital assets,” said Congressman Brad Sherman.
SEC X Ripple
As Sherman pointed out, the SEC was silent on the case of Ripple and its token, XRP. Furthermore, the congressman pressed Grewal as to why the SEC had not pursued exchanges that were trading XRP.
“The division has determined that XRP is a security and is going after it. However, she did not go after exchanges. There, tens of thousands of illegal securities transactions were taking place,” Sherman said.
According to congressmen, exchanges should be punished for trading XRP.
“Do you know you’re a security? That means they were illegally operating a stock exchange,” she said. “If they know it’s illegal and you know it’s illegal and I know it’s illegal, I hope you focus on that.”
The SEC started its case against Ripple in late 2020. This matter is still in court where there have been months of back and forth over the agency’s and Ripple’s attitude.
Now, the court will judge whether Ripple did wrong and, ignoring the SEC, issued security tokens, XRP.
Meanwhile, Ripple claims that the new SEC rulings were released long after the XRP was issued. Furthermore, Ripple argues that just like Ethereum (ETH), XRP is a decentralized asset.