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Thursday, May 6, 2021

Ripple Questions SEC For Considering Ether A Non-Security

The argument between Ripple Lab and the Securities and Exchange Commission takes another turn as the US-based technology company files a Freedom of Information Act (FOIA) request asking for an explanation regarding Ether. On 29th January, the company filed its official reply to the complaint made by the SEC. According to the company, XRP is not a security. The company further raised a question to the SEC for considering Ether’s status as a non-security.

Ripple Files FOIA Request

The Freedom of Information Act request that is filed by Ripple seeks to know about all the information, communication details, and documentation regarding the Ether ecosystem and also about the individuals and attorneys who are the representatives of the foundation. It demands to know about the analyses formed by SEC along with the drafts prepared by Director Hinman’s statements in respect of the Ether foundation as well.

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The confusion regarding which of the cryptocurrencies qualify as security had started long ago.  The argument about whether Ether is a security or commodity took its full shape after the SEC declared that only some of the digital assets qualify as securities. Whereas Bitcoin, which never had a presale, did not come into the discussion. The Security Exchange Commission did not pursue Ether also. But the SEC filed a lawsuit against Ripple claiming the company’s XRP sales represent the firm’s sale of its investment contracts.

According to a representative of the company, SEC has ignored an emerging industry that is even larger than Ether and Bitcoin. He also added that the FOIA request demands every piece of information about the status of Ether as a non-security and how it has been determined by the SEC.

The XRP price collapsed remarkably after the SEC’s declaration against the company. Now Ripple Lab is preparing for its fight to establish the status of XRP.

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