New petition asks SEC chair nominee Gary Gensler to drop Ripple lawsuit
The Ripple community has launched a new petition to “end the war” on XRP. Crypto & Policy founder Thomas Hodge has launched a Change.org petition directed at the candidate for chair of the Securities and Exchange Commission Gary Gensler asking him to end the SEC’lawsuit against Ripple once he is confirmed as chair of the commission. In announcing the news on Wednesday, Crypto & Policy called on Gensler to investigate the possible motives of former SEC chairman Jay Clayton and its SEC director Corporate Finance William Hinman for “favoring” Bitcoin (BTC) and Ether (ETH) while harming XRP. The petition alleges that Clayton and Hinman may have had financial interests in Bitcoin and Ether.
Hodge also recently filed a motion in the SEC’s case to dismiss the lawsuit. He contends that the SEC has no jurisdiction over this action, citing a 2003 decision Supreme Court, which rejected the SEC’s authority over money market funds. He asks that the petition be sent to both Gensler and SEC commissioner Kara Stein. As of press time, the petition has already received over 200 signatures. It asks that both Gensler and Stein intervene to dismiss SEC ‘s lawsuit without prejudice, and that SEC be prohibited from filing such lawsuits in the future. Bitcoin and other cryptocurrencies have come under scrutiny from regulators in recent years, and cryptocurrency trading platforms have taken a major hit in recent weeks.
Hodge wrote in the petition, “[Gensler] has said he wants a fair, level playing field for the adoption of crypto by Wall Street, claiming that his plan for Bitcoin would be to create a regulatory environment in which both Wall Street and crypto can exist. Will he end the systematic targeting of Ripple and the crypto industry by the SEC under Clayton and Hinman?” He also called on Gensler to drop SEC ‘s lawsuit against Ripple. “Gary Gensler has a reputation for doing the right thing. He deserves to be confirmed by the Senate to continue his work as SEC chairman.” Although the SEC has not yet commented on the petition, Gensler’s status as a nominee has not been questioned by any other senator on either side of the aisle.
“The SEC launched its investigation of Ripple in 2014 in an attempt to crush a major opportunity to disrupt money transfers. In the interim, cryptocurrencies have become a mainstream asset class, heavily touted as an inevitable catalyst for revolutionary improvements in payments,” the petition states. “The truth is that a revolution in payments is happening right now, and there are more blockchain-based projects poised to disrupt traditional money transmission than ever before in the history of financial technology. The SEC is in danger of losing the cryptocurrency revolution.” Ripple has certainly been on a tear lately. The company closed its Series D funding round on Tuesday, raising a record-breaking $55 million, led by Tencent and its $350 million investment last summer.
The petition, which gathered more than 300 signatures in just a few hours, claims, “The facts that the new chairman of SEC should investigate are these: Since his appointment in November 2017, Gary Gensler has called the attack on Ripple Consensus Ledger “absurd,” rejected the unsubstantiated claim by SEC, that XRP is a security, and promised that he would investigate the allegations against Ripple. On March 27, 2018, the SEC responded to questions from XRP investors and announced the possible impending delay of the investigation. On April 11, SEC ‘s counsel withdrew from the case. Following a lawsuit filed by Fred Ehrsam, the CEO of Ripple, against the SEC, the SEC had to announce on April 12 that it would not file charges against Ripple or its CEO.
To bolster this case, the petition argues that those who oppose XRP are in a stronger position than those in the market who support it. Any attempt by XRP owners to endear themselves to SEC “would be seen as a great victory for XRP assets and a rebuke to their opponents,” the petition states.
There is ample evidence that the SEC, under the leadership of the notorious ex- Goldman Sachs executive Jay Clayton, has been working to stifle competition in cryptocurrencies, the petition says. The target of this attack is XRP, a cryptocurrency that exists outside of the Ripple protocol, and the SEC has taken a side.
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