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It has been a long battle between the US SEC and Ripple Labs, its Executives, and the native coin XRP. The SEC sued the defendants in 2020, alleging a securities laws breach.
While speculations and expectations of a win for Ripple increase among XRP community members, a crypto firm CEO predict a loss for Ripple.
In an interview on a Daily Drop episode, the founder and CEO of Prometheum, Aaron Kaplan, stated that the US SEC would win Ripple in the ongoing lawsuit.
The Judge Ruled in the SEC’s Favor in LBRY Credits Lawsuit, Kaplan
During the interview, Kaplan mentioned the lawsuit between the SEC and LBRY Credits noting that the commission won the battle as the judge favored their arguments.
Notably, the SEC sued the content distribution blockchain network LBRY Credits in March 2021, stating that from 2016 to 2021, the platform offered unregistered securities to investors amassing millions of dollars in the sale.
SEC stated that LBC, which the firm sold to investors, was a security, and the firm sold it to “fund its business and build its project.”
In his statement, Kaplan said, “I anticipate the SEC will win this case as every indication points to a decision in the commission’s favour,”
After much deliberations and court hearings, the US SEC won the case, which makes Kaplan think the same could happen in the present circumstance since the facts are similar.
The XRP Community Reacts Against Kaplan’s Assertions About a Loss for Ripple
Many XRP community members slammed the Prometheum CEO for suggesting that the SEC would win.
Some members pointed out that Kaplan only mentioned the similarities between the two cases while neglecting the difference showcasing his bias.
One community member implied that Kaplan and the SEC Chair are in cohorts, saying, “One big religious club Gensler’s chooses.”
Also, the popular Attorney Deaton’s firm, CryptoLaw, responded to the interview, stating, “Very odd. Nothing about the cases cited nor even the Hinman speech itself or the warnings he got from the SEC staff about the speech support the notion that the token is a security.”
Notably, it is not the first time Kaplan supported the US SEC. During the House Financial Services Committee hearing on June 13, the CEO said the existing laws are enough to regulate the crypto industry.
Another user said, “Without offending anybody here, but sometimes you can see in the faces of people that they are liars and not good, sorry but if I listen to a person like this, my antennas are telling me I don’t like it.”
On June 15, a post by Marisa Tashman Coppel revealed that Prometheum bagged approval for a “first-of-its-kind Special Purpose Broker-Dealer (SPBD) for digital asset securities.”
The achievement has attracted suspicions about its links to the US SEC, leading the Blockchain Association to file for “a Freedom of Information Act (FOIA) request with the commis
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