InstaForex

August 19, 2021

Former SEC Officer's Testimony Is Like a Bomb! ‘XRP Is A Security’

 The investigation into the Securities and Exchange Commission's (SEC) lawsuit against Ripple Labs is still ongoing.


Former SEC corporate finance director William Hinman in recent testimony revealed XRP is an unregistered security.


For the record, Hinman once declared Bitcoin (BTC) and Ethereum (ETH) as non -securities.


Following that, Hinman also explained that he had warned Ripple to stop selling the coins immediately:


“The most I remember was when XRP and someone who held this position before me, including enforcement officers were interested in restructuring so that it was in accordance with the law. And the first thing I said then was; you continue to offer meaningful unrestricted XRP as an offering of securities. If you want to obey the law, you have to stop and they will understand. ”



The testimony from Hinman dealt a blow to Ripple, yet the firm itself demanded permission from the court to bring the individual to give an explanation.


At the same time, the SEC has proposed judge Sarah Netburn to approve protection against their special logs on the grounds that it contains detailed information such as issues and related times of communication between several SEC officials.


What the SEC is concerned about is if any party wants to exploit it with the wrong purpose.


The supervisory agency also requested that Hinman's testimony be edited or thoroughly scrutinized as there are aspects that need to be emphasized, namely the information and identities of third parties, namely Hinman's former and current clients, including third parties involved in their business discussions with the SEC as they are all legal. federal securities.


At the time of writing, XRP is trading at $ 1.12, down over 1% in 24 hours. These assets however saw a jump of more than 14% since last week.