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Highlights
- Jeremy Hogan criticizes the SEC's $2 billion fine against Ripple.
- Hogan claims the fine contradicts the SEC's investor protection mission.
- SEC's actions might lead to Ripple selling large amounts of XRP, impacting retail investors.
Jeremy Hogan has criticized the actions of the SEC against Ripple Labs. On the X platform, Hogan vented his frustration with the SEC’s request for a $2 billion fine from Ripple. He claims that this act is inconsistent with the mission of the SEC to safeguard the investors. Hogan said that if such a fine were enforced, Ripple would have to sell a large quantity of XRP. Retail holders may also suffer from the implications of this sale on the price of XRP.
With such comments, Hogan throws light on the SEC’s attitude towards Ripple, which seems to hurt the retail investors in the first place rather than protect them. The lawyer observes that the intended redistribution of the fine by the SEC may result in institutional holders benefiting over individual investors. This situation brings up doubts regarding the success of the SEC’s tactics in protecting the general investor community. Jeremy Hogan gives the XRP community an opportunity to ponder whether they feel that the SEC’s actions defend them.
SEC Fine Could Impact Ripple Token Value
Ripple Labs has been accused by the SEC of hurting investors and the financial market with its operations. The commission has responded by offering a fine as a remedy. This penalty includes injunctive relief, civil penalties, and disgorgement of profits. The SEC claims that this measure is required to cover the supposed harm done by Ripple. It is in the framework of the efforts of the SEC to regulate the cryptocurrency space following the existing laws.
However, critics such as Jeremy Hogan claim that imposing traditional regulatory tools on cryptocurrency would lead to other adverse effects. Ripple selling a big amount of XRP due to the SEC’s actions would depress the value of the token. Such a result can damage the investors that the SEC is trying to protect. The debate rages on which is the best and most effective regulatory approach in dealing with innovative digital assets such as XRP.
John Deaton Critiques SEC’s Outdated Crypto Regulation
John Deaton, who is a Ripple advocate and a U.S. Senate candidate, has also commented on the SEC’s regulatory approach. Deaton discussed the background of the Securities Exchange Act of 1934, focusing on its function of safeguarding investors after the 1929 crash. He observes that although the SEC was established on investor protection principles, it still needs to embrace the latest technological advances like blockchain and cryptocurrencies.
Deaton argues that the SEC’s application of laws from 1934 to digital assets needs to be updated. He points out that with 30% of Americans now owning cryptocurrencies, it is time for a regulatory overhaul. Deaton’s comments suggest a need for the SEC to evolve its strategies to better align with the realities of today’s digital asset market. His call for SEC chairman Gary Gensler to resign underscores the growing frustration among some community members with the current regulatory framework’s ability to accommodate innovation in the cryptocurrency space.
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