Ripple Labs has stood steadfast against the US Securities and Exchange Commission in a lawsuit that has dragged on for almost a year. It’s not over yet, however. When the blockchain company was first accused by the watchdog of violating securities laws, many in the crypto community spoke out in favor of Ripple.
However, not everyone is on the company’s side.
Messari CEO Ryan Selkis believes that while Ripple has not violated securities laws alleged by the SEC, they are guilty of fraud and should be charged as a result.
Ryan Selkis – CEO Messari
In one thread On Twitter, he criticized the SEC’s leadership, noting:
“They mislead XRP holders when it comes to internal token sales, selectively disclosing data and promoting the partnership as a value driver for the underlying currency.”
Selkis also argued that if SEC chairman Gary Gensler endorsed Commissioner Peirce’s Safe Harbor proposal, Ripple’s alleged fraudulent activities could be “frozen”.
“The SEC fights technical security breaches while bypassing Safe Harbor to prevent fraud.”
SEC Commissioner Hester Peirce, also known as “Crypto mom,” released several versions of the proposal over the year, offering a three-year grace period for projects to get started successfully before they worry.
Although she has received a lot of positive feedback, it has not yet been approved.
Selkis also took a few examples from Ripple’s business to show how the Safe Harbor offering could benefit the company.
Initially, Peirce suggested providing third parties with enough information so that the token’s transaction history can be checked. Selkis believes this will “ensure that Ripple supports a freely available and redistributable block explorer”.
The next item in terms of documenting all token trade information is all of Ripple’s historical sales, along with “Lookup and Discount for Business Partners”.
According to him, the proposal would make it possible to track sales of XRP stocks by the top operator at Ripple along with the connected platform.
He concluded that the proposal would give Ripple three years to develop a “decentralized and distributed strategy”.
“The company must continuously report to prove its innocence or face enforcement proceedings for fraud. It will be a growth and innovation friendly strategy. Regulators will need to improve their reporting or face fraud allegations, not just a security breach. ”
As expected, there were many reactions afterwards. John Deaton tweets:
“Gensler testified before Congress and declined to answer a question about whether he had read Hester Peirce’s Safe Harbor. It is understandable that you haven’t read it. The simple truth is, he didn’t even take the time to read Safe Harbor to let you know his intentions. ”
Selkis is critical of Ripple even before the company was sued by the SEC. While Messari previously referred to XRP as “toxic waste,” its founder once published a report accusing Ripple of using its RippleWorks charity fund to evade taxes.
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