US Congressman Brad Sherman said that XRP is a security.
During a congressional hearing on the US Securities and Exchange Commission’s (SEC) Executive Department’s oversight, Representative Brad Sherman stated that XRP is a security.
Sherman asked division manager Gurbir Grewal why the regulator didn’t restrict trading platforms that offer illicit securities like XRP. Sherman claimed that these platforms operate like illegal securities exchanges.
The SEC took Ripple to court in December 2020, alleging that XRP is a security. The case is expected to conclude next year.
Stuart Alderoty, Ripple’s general counsel, described Sherman’s debut as an unproven claim, adding that it harmed American innovation.
After the lawsuit, many US-based crypto exchanges such as Coinbase took action to stop XRP transactions.
