Kraken CEO: SEC’s Case Against Ripple Could Hurt Crypto Exchanges

Kraken CEO and co-founder Jesse Powell is concerned that the U.S. Securities and Exchange Commission’s (SEC) case against Ripple could be harmful to crypto exchanges.

The SEC is suing Ripple for $1.3 billion. Alleging that the payment startup knowingly sold unregistered securities in the form of XRP.

The lawsuit was filed last December. As a result, many exchanges such as Coinbase and Binance.US have either halted or delisted XRP trading in the United States.

“Huge asymmetrical risk for exchanges,” Kraken CEO said in a tweet. “Have to assume SEC’s case is in good faith. Judges tend to side with agencies.

“If XRP is found to be a security, the SEC would say that exchanges should have known. Safe harbor pending outcome would have been responsible if only purpose is to ‘test.’”

Moreover, Powell’s statement was in response to a Twitter thread from Ripple CEO Brad Garlinghouse and Ripple general counsel Stuart Alderoty.

Regarding the U.S. State of Delaware’s latest decision to reject Tetragon Financial Group’s request for an opening injunction against the firm.

Likewise, the Delaware Court found that the SEC had not yet determined XRP is a security. Therefore, Tetragon’s claim to freeze Ripple’s liquid assets is not valid until they redeem their Series C preferred stock.

Statements from Alderoty, Garlinghouse

Said Alderoty in a tweet. “Update on Tetragon’s Series C shareholder suit: the Judge ruled that since there has been no official determination regarding XRP’s status. Tetragon’s claim that a securities default occurred is wrong.

“The Tetragon ruling, coupled with the SEC’s filing in @JohnEDeaton1’s case. Should put to rest the FUD that the SEC unilaterally determined that XRP is a ‘security.’ Glad that’s settled!”

Furthermore, Garlinghouse claimed that the SEC’s decision to regulate XRP and the crypto space by bringing actions against the firm can cause confusion. Leading to complicated and fruitless legal battles as is the case with Tetragon.

Where can XRP be traded?

Although the options for investing in XRP are limited in the U.S., the digital asset can still be traded outside of the U.S.

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