The chief executive of the Fintech firm Ripple shared his opinion on the statement passed by a CFTC official regarding the SEC vs Wahi lawsuit.
On Thursday of this week, the US Securities and Exchange Commission (SEC) filed a lawsuit against the Coinbase product manager Ishan Wahi. According to the SEC agency, the Coinbase manager shared confidential details with his close relatives through foreign mobile and it was a violation of securities law because the information facilitated insider trading, which was against the laws of Securities.
In response, Coinbase exchange shared its point of view via a blog post and said that 7 out of 9 mentioned assets (AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM) by SEC are listed on Coinbase exchange, so how SEC can claim that Securities laws violated with 7/9 mentioned assets.
Caroline D. Pham, Commissioner at CFTC agency, shared her opinion regarding this case and said that:
“The SEC complaint alleges that dozens of digital assets, including those that could be described as utility tokens and/or certain tokens relating to DAOs, are securities. It continues, the SEC’s allegations could have broad implications beyond this single case, underscoring how critical and urgent it is that regulators work together.”
Ripple CEO Brad Garlinghouse supported the statement of the CFTC commissioner and stated “Unfortunately, the SEC seems more than content to operate in the latter”.
Ripple vs SEC
Here the response by the Ripple boss against the SEC agency was natural because the Coinbase exchange raised questions indirectly in favour of the Ripple firm.
In the past, when the Coinbase exchange was allowed to public listing then at that time XRP trading was allowed on the Coinbase exchange but after that SEC agency initiated a legal case against Ripple’s native token XRP. Through the Lawsuit, the SEC agency claimed that XRP is unregistered security and the Ripple company violated the law by selling unregistered securities publicly.
Ripple’s CEO raised questions many times against SEC agencies during his interviews with the media. According to Ripple CEO, how the SEC agency can allow trading of XRP on publicly listed exchanges, and at the same time, it can file a case against the XRP token. So Garlinghouse claimed that the SEC agency violated its own laws with such contrary decisions.