U.S Rep Believes Ripple Will Lose SEC Lawsuit For This Reason

US Representative Brad Sherman recently advised the Securities and Exchange Commission (SEC) to go after crypto exchanges that supported Ripple’s XRP token. However, in a recent interaction with Fox Business journalist, Eleanor Terrett Sherman made another claim against the token.

Rep refutes talking to SEC over Ripple

In a Tweet, Charles Gasparino, Senior Correspondent at Fox Business, mentioned that Brad Sherman believes the Regulator will win the Ripple lawsuit over the legality of unregistered sales of XRP. He added he has been in contact with the SEC chair Gary Gensler to expand the case.

Meanwhile, the US Rep responded to this and said that he often speaks to Gensler sometimes about crypto. However, he has never spoken about XRP. Sherman mentioned that the only conversation he had about the XRP token was the testimony of Director Gurbir Grewal.

Eleanor Terrett clarified the senior correspondent’s claim over the Congressman. She highlighted that this statement about the crypto exchanges was mentioned at the hearing.

Why XRP is a security?

Terrett in the interview asked Sherman why he thinks XRP is a security? He replied that for the reasons set forth in the Commission’s position. Meanwhile, he went on to explain that XRP holders and investors relied on Ripple’s efforts to pump the price.

Congressman added that the proof that he is right stems from the crypto exchanges de listing Ripple’s token because they all cumulated that it was a security too.

Terrett referred that the fact platforms were facing a lack of guidance from the commission.

The congressman replied, “Everyone knew they were skating on thin ice. They decided to skate on thin ice to make money.”

She added that Sherman looked confident that the XRP token is a security under the Howey Test. However, he called the same test relatively ancient in his opening remarks.