So here we have it – straight from the SEC. Seems like SEC did not inform inquiring third parties about Ripple about XRP being a security before they filed the lawsuit against Ripple. You can read the article here. This means that when others ask the SEC about Ripple and whether XRP is a security, they weren’t told that it is considered by them to be a security. No legal clarity. So this begs the question – what is the SEC thinking when they attempted to sue Ripple? Are they trying to scare Ripple without giving them any notice or even informing them of what they (as in the SEC) view the sale of XRP as? I am guessing that the SEC was hoping that Ripple will immediately settle and would not make this a big fuss out of this. But as we all know by now, this has become one of the biggest stories in Crypto market. And it shows that the SEC themselves are not clear (or even clean dare I say) when it comes to issues like this. I am all for some form of regulation, but this has become somewhat of a farce if you ask me. The SEC case has too many holes for it to really stand up to scrutiny and I think this honestly shows you what the SEC is famous for – bullying entities that they deemed as a threat to the traditional financial system. Even the judge involved in this case can see that something is very fishy here.
And what about the SEC now threatening Coinbase as well. Looks like it is the exact same thing going on – threatening entities without any legal reason or clarity. I mean the SEC needs to stick to a legal framework and not just simply sue someone just because they are look like a threat to whatever they are protecting. Again I repeat I am all for regulations but this isn’t it. There are so many scammers and fake tokens on the Internet with millions of dollars being lost or stolen or being cheated but we barely hear anything from the SEC. I don’t even see them coming down hard on hackers and scammers. Yet they are going after legitimate companies like Coinbase and Ripple? I don’t know about you but this doesn’t make sense. And do you guys know what SEC is concerned about Coinbase – their “Lend” program. Basically lending cryptocurrencies to investors. You know competing with traditional financial institutions. And it is ironic that when asked for the reasons why they are wanting to sue Coinbase for this Lend program, the SEC is unable to give any information. Yes, they are UNABLE to provide reasons why they want to sue Coinbase for this Lend program. This is just amazing right? Don’t know about you but this doesn’t sound like governmental organization meant to protect investors. More like someone just make up rules as they see fit. And these rules don’t seem to be protecting investors one bit.
Well enough of my rant. I will see you guys next week. Hopefully we will see more positive news, especially on the Ripple case. I think their lawyers are making the SEC look very bad already. But it is amazing that even after getting hammered by all sides, the SEC is still going ahead with their lawsuit. Sometimes shame have no bounds right?