- Former US Securities and Exchange Commission’s chair is observed supporting Ripple Labs
- Mary claims that with the filed lawsuit, the US SEC has made a blunder
- Howey test to enforce conventional laws is not suitable for the latest technological developments
- Gary Gensler is the only positive expectation of Ripple Labs
Ripple Labs, one of the largest FinTech firms globally, is being supported by Mary Jo White, former chair of the Securities and Exchange Commission (SEC). Recently in an interview with Forbes, it is revealed that Mary is worried regarding the regulator’s moves against the firm. The former chair’s opinion is found echoing the views of two other former SEC executives, Joseph Grundfest and Joseph Hall. The two members have also disputed the crypto market governing the firm’s actual intention and actions.
The US SEC has made a blunder by accusing Ripple Labs
The SEC filed a lawsuit against Ripple Labs, claiming that the native token of the firm is securities and not utility tokens. Following the defense strategy of Ripple Labs, Mary commented that the SEC had made a blunder by accusing the firm of supposedly offering unregistered securities. Additionally, the former chair allegedly claimed that there is no way to sugarcoat, as the regulatory enforcement is wrong legally and factually.
SEC’s battle strategy doesn’t suit the latest tech developments
According to Mary, the US SEC’s argument is diverting as XRP is not offered as a speculative investment instrument to make creators rich basically. Moreover, she also mentioned that the battle had caused a Howey test to enforce customary laws. Indeed, such laws do not suit the latest technological developments.
Mary has blamed the US SEC for failing to safeguard retail investors via its strict regulations. However, the regulator’s actions have resulted in a $15 billion in the form of summary judgment from the court. Before lifting the legal cloud over the FinTech firm, both sites are expected to settle. However, the conclusion of the case will provide more comprehensive guidance to the crypto industry.
Gary Gensler has brought hope to the crypto industry
Mary pointed that categorizing Ethereum as a non-security, whereas XRP as an unregistered security, explains the US SEC’s inconsistency level. Moreover, as the new Biden administration has appointed Gary Gensler as the latest regulatory authority chair, the crypto industry has gained hope. Indeed, Gary, I expected to look into the filed lawsuit personally to conclude positively.
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