Just In: XRP Lawyer Explains SEC’s Flaw Over Ripple Payments

XRP News: Ripple’s (XRP) On Demand Liquidity service has long been a subject of debate around the U.S. Securities and Exchange Commission (SEC) lawsuit. In the last few years, Ripple had been involving XRP only in the cross border payments space, which is argued to be not amounting to sale as an investment but used as a payments tool. While the XRP crypto community waits for the summary judgement in the SEC case, the debate around Ripple’s chances of winning are intensifying. On the other side, the SEC ramped up its crackdown on crypto players, in what could continue in the weeks to come.

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Another change is likely to come into the picture as the SEC recently recommended stricter rules for businesses that secure assets for fund managers. This will include custody of crypto assets, making it tougher to operate in the US.

XRP Cross Border Payments As ‘Underwritings’

Attorney John Deaton, who represents the XRP holders, reiterated that the SEC’s argument on XRP’s credentials in the On Demand Liquidity service is flawed. Responding to this mention in the SEC’s Daubert motion, Deaton found fault with calling XRP holders as ‘underwriters’. The SEC’s motion said the users of XRP on demand liquidity service were acting as underwriters as they immediately resold XRP into public markets. The Attorney reacted saying,

“This underwriter issue is what many fail to recognize and why I sued SEC.”

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As of writing, XRP price stands at $0.393077, up 0.51% in the last 24 hours, according to CoinGape price tracker.

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