Following news of Kraken’s reimbursement with the Securities and Exchange Commission, an XRP proponent has announced what Sec stands to achieve if it resolves with Ripple.
In December 2020, the Securities and Exchange Commission indicted Ripple and two of their directors, Chris Larsen and Brad Garlinghouse, for issuing 1.3 billion dollars in unauthorized Securities in the form of XRP. The issue has been hitting the headlines for over a few years.
The parties anticipate the judge to give a verdict on the final results of the lawsuit. While the Securities and Exchange Commission has been in a legal war with Ripple for more than a couple of years, the crypto watchdog has resolved with leading crypto firms comprising BlockFi and Kraken for violating United States Securities and Exchange Commission guidelines.
The Securities and Exchange Commission’s latest reimbursement with Kraken captured the attention of the XRP community, who trust the agency has a lot to achieve by resolving with Ripple.
How the Securities & Exchange Commission Might Profit from Resolving with Ripple
In a recent tweet, a crypto advocate and lawyer, Bill Morgan, announced five things the Securities and Exchange Commission might profit from deciding with Ripple. First, if the Securities and Exchange Commission resolves with Ripple, the blockchain industry could settle a huge penalty as part of the arrangement, similar to what Kraken did.
According to Morgan, the Securities and Exchange Commission might get a payout that validates the lawsuit against Ripple if it resolves it. Moreover, the Securities and Exchange Commission may get to retain the contents of William Hinman’s 2018 contentious reports sealed in case of reimbursement.
They might also prevent getting an adverse decision on a polite note if it resolves with the top blockchain industry. Eventually, Morgan added there might be no decision on the blue sky capitalization arrangement issues if the parties resolve them.
United States Parliament Summons SEC Chair
On the other hand, the United States parliament has offered a request to the Chairman of the Securities and Exchange Commission, Gary Gensler, requesting him to give information regarding the commission’s scrutinization of FTX. The Commission’s Chairman was given until the 24th of January this year to present outlined reports to the GOP.
Yesterday, the United States Parliament’s committee on financial services demanded that the Securities and Exchange Commission present the records of his commission’s scrutinization of the former FTX co-founder Sam Bankman Fried regarding the company’s collapse.
In addition, the parliament requested the Chairman of the Securities and Exchange Commission to present detailed communication reports between several of the major players in the scrutinization by the Securities and Exchange Commission.
The reports requested by the Chairman of the Securities and Exchange Commission comprise the communication among and between employees of the Securities and Exchange Commission division of enforcement, comprising Grewal Gubir, the Director of the department relating to the allegations against the former FTX co-founder Sam Bankman Fried by the Securities and Exchange Commission.
According to the reports, the motive of the demand is to follow a clear pathway in the scrutinization of the former co-founder of the collapsed FTX over his role in the company’s collapse. In addition, the parliament announced rising concerns over the Securities and Exchange Commission’s Division of Enforcement scrutinization procedures on Sam Bankman Fried.
It specifically reported that the scheduling of the allegation charges against Sam Bankman and his arrest raised concerns about the commission’s cooperation with the Department of Justice.