Ripple Lawsuit: Prometheum Founder Claims ‘SEC Will Win’ This Case

Lavina Daryanani
Source: Fox Business

Prometheum has been all over the news lately. Recently, the Co-Founder and Co-CEO of the company, Aaron Kaplan, testified before the U.S. House while discussing crypto regulations. Unlike most other stalwarts from the space, Kaplan seemed to be in favor of regulating crypto under existing securities regulations. In fact, he contended that the SEC has clearly laid out the framework for crypto businesses to abide by. He went to the extent of labeling the SEC to be “the most capable financial markets regulatory agency in the world.”

Well, in another recent interview, Kaplan has now claimed that the SEC will go on to win the lawsuit against blockchain payment firm Ripple. For context, the case was initially filed by the regulatory agency back in December 2020. The SEC contended that Ripple and its executives illegally sold XRP to investors without registering it as a security. Talking to Daily Drop show’s Bobby Del Rio, Kalpan said,

“I anticipate the SEC will win this case as every indication points to a decision in the commission’s favor.”

Also Read: With Judge’s Ruling Impending in Ripple Case, Should Investors Buy XRP?

Ripple case is similar to LBRY case: Kalpan

Drawing parallels with the LBRY case, Kalpan contended that the facts in the ongoing Ripple case are quite similar. In effect, he expected the same outcome. In November last year, LBRY lost its case against the SEC. Specifically, the agency argued that LBRY “offered and sold unregistered securities” in violation of the securities law. However, the defendants argued that they were not selling securities because its LBC token functioned “as a digital currency that is an essential component of the LBRY Blockchain.”

People from the space outrightly called Kalpan’s opinion to be “noise” and accused him of having “bad vibes.” A community member questioned,

If the case was such an easy win for the SEC, shouldn’t it have ended long ago? Why are all these people commenting now after the Emails being revealed?

Here it is worth recalling that Hinman’s documents were made public a couple of days back. The community celebrated the same as a goal scored, while Ripple’s Chief Legal Officer went on to assert that an investigation must be conducted to understand what or who influenced Hinman, why conflicts (or, at the very least, appearances of conflicts) were ignored, and why the SEC touted the speech knowing that it would create “greater confusion.”

Also Read: Ripple: Novatti’s Australian Dollar Backed Stablecoin Goes Live on XRP Ledger