New York, USA – The case of Ripple and SEC continues to heat up as SEC requests the company to provide Slack history. Garlinghouse shares how SEC stated that Ethereum or ETH is not a security.
The lawsuit involving Ripple and SEC is considered one of the most intense cases in the digital asset industry. The conflict began when SEC specified XRP as security instead of a cryptocurrency. Also, it affects investors’ insight toward cryptocurrency, creating more confusion in the digital asset market.
As per Michael Arrington, a cryptocurrency enthusiast and a co-founder of TechCrunch, the US Sec is showing more interest in governing the crypto market instead of making clear plans on how it can support cryptocurrency developers. Support is necessary for developers when it comes to innovating without controlling hurdles.
On the other hand, the goals of SEC is different from what Arrington and the rest of the enthusiast wants. The SEC chairman Gary Gensler, stated that crypto companies should meet public goals through technologies in funding services. When the industry introduces new technologies, accomplishing core public policy objectives is a must.
Gensler also added that more regulation is necessary on different cryptocurrency markets, like decentralized and centralized cryptocurrency trading, stablecoins, DeFi, and crypto-related funding products. He stated that investor protection is not enough.
On another note, Brad Garlinghouse shared that Bill Hinman, the Director of SEC’s Division of Corporate Finance in 2018, stated that ETH was a cryptocurrency, not security. Another former chairman from SEC, Jay Clinton, confirmed Hinman’s statement.
Now, SEC filed for a motion, requiring Ripple to provide the history of Slack Communication. The request targets to look for related communications between this company’s employees. As per SEC, some Slack messages give value, and these can work as evidence for the case, which the company refused to provide now.
Judge Sarah Netburn denied the request of SEC to access legal communications, as well as the motion to suppress a statement.
Ripple continues to face the allegations, insisting that the company has not done anything wrong. The company stated that XRP never held an ICO and it’s not a security.