The issue of the United States Securities and Exchange Commission (SEC) suit against the crypto firm, Ripple Labs is still being heard in court.
Interestingly, in a recent SEC court hearing represented by attorney Jeremy Hogan revealed the crypto exchange platform that trades XRP does not actually violate any of the rules outlined.
Hogan’s argument: “Under section 4, Ripple and several partners have been found guilty of selling XRP illegally.
The important thing here is that exchanges that delisted XRP two months ago do not violate securities laws at all if they re-list XRP for the purpose of buying and selling activities. ”
Section 4 there emphasizes: 1) The sale of securities by issuers to the public market requires registration, and 2) ordinary trading transactions in the market by investors once the securities are certified, are usually exempt from registration.
At the same time, SEC youth lawyers denied the existence of the use of XRP, describing the digital currency as not the same as Bitcoin and Ether because it is backed by a single and recognizable body. In fact, the efforts of Ripple and the defendants proved XRP as a security.
However, the argument was refuted by Ripple's lawyer, Matthew Solomon:
“XRP has been compiling several use cases since the beginning. For example, XRP has a product known as On-Demand Liquidity (ODL) which is used to assist financial institutions for smooth transactions at a lower cost.
“As a digital asset, it is very helpful for banks that do not have their own fiat accounts and can distribute money more effectively. XRP can be used as a currency liaison and Ripple CEO Brad Garlinghouse is working to further expand the use of this case. ”
