The former SEC chief is defending Ripple in her case
The date for the first court session between Ripple and the US Securities and Exchange Commission, scheduled for Monday, February 22nd, is approaching.
Mrs. Mary Jo White, former chair of the Securities and Exchange Commission, told "Fortune" magazine that the committee she once chaired is completely wrong in filing its case against Ripple.
In an interview with "Fortune" magazine, "White" pointed to several problems in the case against Ripple on several levels.
First, it indicated the strangeness of timing and the lengthy investigation that preceded the announcement of filing the lawsuit.
White provided her interpretation with regard to her background, experience and experience as the Chair of the US Securities and Exchange Commission and an American attorney in the Southern District of New York, where she stated:
When it takes a long time to discover a case, you probably shouldn't bring it.
White adds that the manner in which the case was brought raises questions, as the case fails in terms of merit.
She points to the fact that the SEC has not put in place a consistent framework for dealing with cryptocurrency issues.
As a reminder, the Securities and Exchange Commission (SEC) previously announced that Ethereum is a cryptocurrency and not a guarantee.
And many of Ripple's advocates argue that the digital currency Ripple is like Ethereum.
In her interview, White assumed two possible time frames.
The court ruling in the Southern District of New York could be rendered as early as October.
Alternatively, Ripple and the SEC can reach an out-of-court agreement in advance.
An out-of-court agreement is likely, given comments by SEC Commissioner Hester Pierce.
In January, Pearce indicated that the SEC routinely settles such cases out of court.
Pierce is also one of the many influential voices within the US government calling for greater clarity regarding cryptocurrencies on the part of regulatory agencies.
SEC case v. Ripple
On December 22, 2020, the Securities and Exchange Commission "SEC" filed two lawsuits in the Federal Court of the Southern District of New York against Ripple and two of its chief executives.
In one, the SEC claimed that Ripple sold $ 1.2 billion in unregistered securities.
On the other hand, the committee claims that Brad Garlinghouse, the current CEO of Ripple, and former CEO, Chris Larsen, sold $ 600 million in unregistered securities.
The market reaction was swift, as the Ripple currency suffered from a decrease in the price, which in turn affected the decline in the total market value of the currency, which fell from third to seventh place.
This came after several trading platforms announced the cancellation or freezing of trading the digital currency XRP due to the case against it.
Garlinghouse asserts that only 5% of Ripple customers are located in the US, and that freezing Ripple's activities in the US will not harm the network as a whole.