U.S. SEC Chairman Jay Clayton Asked About XRP Ruling
NEWS
October 25  |  2 min read

U.S. SEC Chairman Faces Question Regarding SEC XRP Ruling

The COIN360 Editorial Team

At the Fintech Week 2019, Chairman of the US Securities and Exchange Commission (SEC) Jay Clayton was asked by an attendee whether the agency would rule on XRP anytime soon.

Clayton, who was approached during a Q&A session, was asked by Tim Griffin, an “avid XRP investor”, “will the SEC rule on XRP and when?” Griffin also noted that Ripple CEO Brad Garlinghouse was going to speak later at the event and that he would ask him a question as well.

The SEC Chairman answered that he could not refer to the state of the cryptocurrency as the agency doesn’t “comment on specific enforcement matters or whether matters are under review.” However, he did state that there are many factors involved in the assessment of any remedial action and that an important part of this is whether the “conduct occurred inside or outside the United States, investor loss,” and more, but he refused to comment on any particular product as he was “not in a position to comment”.

Last month Ripple filed a motion to dismiss a lawsuit in which Ripple, XRP II, and Ripple CEO Brad Garlinghouse are accused of having violated securities law by selling XRP. This is one of the latest lawsuits that started back in early 2018 against the company for the alleged unregistered ICO for their cryptocurrency XRP, which the SEC deems to be a security. In the motion to dismiss, Ripple’s lawyers argue, among other things, that the lawsuit was initiated more than 3 years after the ICO was held, which would make the plaintiff’s demand invalid.

Earlier this week, Garlinghouse published a blog post stating that Ripple had added new members to the company’s regulatory team and had joined the Blockchain Association. The Ripple CEO mentioned the importance of the industry coming together and working “with regulators in a proactive and productive manner to push the industry forward.” In addition, the post stated that Ripple has also expanded to Washington D.C., which will help “maintain a dialogue with Washington regulators and policymakers”.