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Congressman Stephen Lynch claims the SEC won its lawsuit against top blockchain company Ripple.
In a video making the rounds, Massachusetts Representative Stephen Lynch claimed that the United States Securities and Exchange Commission (SEC) won the lawsuit against Ripple.
Rep. Lynch made this known while dismissing claims that the SEC prefers to regulate the crypto industry using regulation by enforcement tactics.
“I want to address the claim that the SEC has been exercising regulation by enforcement as if there are no guidelines out there that these crypto firms would be bound by,” said Rep. Lynch.
🔥 Congressman Lynch claims the SEC and Gary Gensler won the Ripple case.#xrp $xrp #XRPCommunity #crypto #blockchain pic.twitter.com/OMFi3he1Sv
— Cryptic Poet (@1CrypticPoet) July 26, 2023
He debunked these claims by stating that the SEC, under the leadership of Gensler, has filed 131 cases against crypto firms.
Rep. Lynch said the regulatory agency had won 130 and a half out of the 131 cases, including the Ripple lawsuit.
Consequently, the congressman said the SEC is regulating the crypto industry by applying the law, as opposed to claims that the commission prefers the regulation by enforcement approach.
“Mr. Gensler at the SEC has brought 131 cases and has won 130 and half if you count the Ripple case last week. The SEC is regulating [the crypto industry] by the application of the law,” he added.
Deaton Wants to Testify on Behalf of XRP Holders
The video, which has gone viral within the XRP community, stirred reactions from prominent members, including Attorney John Deaton.
Reacting, Attorney Deaton requested permission to testify on behalf of retail crypto holders at one of these congressional hearings regarding SEC enforcement actions.
In a tweet yesterday, Attorney Deaton disclosed that he represents over 75K XRP holders and more than 4K Coinbase customers. Thus, he is one of the most qualified candidates to speak on behalf of retail crypto holders.
“After all, shouldn’t facts and truth matter during these hearings,” Deaton noted.
@RepFrenchHill @RepHuizenga @WarrenDavidson @GOPMajorityWhip @PatrickMcHenry @RepDarrenSoto
FYI, I would love to have an opportunity to testify on behalf of individual retail holders. I represent 75K XRP holders and over 4K Coinbase customers. After all, shouldn’t facts and… https://t.co/gB3jtgViYt
— John E Deaton (@JohnEDeaton1) July 26, 2023
In an attempt to get his request approved, Deaton tagged several members of the United States House Financial Services Committee.
Notably, some of the Congressmen Attorney Deaton tagged in the tweet include committee chair Patrick McHenry (R-NC), Warren Davidson (R-OH), Bill Huizenga (R-MI), French Hill (R-AR), Tom Emmer (R-MN), and Darren Soto (D-FL).
Other XRP Holders React
Besides Deaton, other XRP enthusiasts also reacted to Rep. Lynch’s remark at the recent congressional hearing. Notably, XRP community members expressed disappointment with Rep. Lynch for claiming the SEC won the Ripple lawsuit.
Technically, Gensler won 25%. He lost on 3 of 4 types of xrp sales. If you factor in the fact that xrp in and of itself was declared to NOT be a security, he lost 4 of 5 principle arguments so he’s really at 20%, not half.
Batting .200 gets you demoted to the minor leagues.— Leerock Marblestone (@carsairs) July 26, 2023
Some XRP enthusiasts disagreed with Rep. Lynch’s position that the SEC is regulating through the application of the law.
A community member called attention to comments made by Magistrate Judge Sarah Netburn in the Ripple case. Judge Netburn had criticized the SEC for litigating for its internal goal and not out of allegiance to the law.
Ripple Says Court Ruling Is an Unequivocal Win for the Company
Meanwhile, Ripple has clarified that it won the lawsuit, despite the judge’s ruling that its past XRP sales to institutional clients constitute securities.
As reported, Ripple CEO Brad Garlinghouse said the court’s ruling was an unequivocal win for the company, as XRP was declared a non-security.
Ripple has reiterated that its primary focus in the lawsuit was to ensure XRP is given clarity, and the company got its desire.