Congressman Sherman Believes SEC Will Win the Case Against XRP

Charles Gasparino, Senior Correspondent at Fox Business Network (FBN), tweeted earlier today claiming that Congressman Sherman believes the SEC would easily win its case against Ripple over the legality of its unregistered sales of XRP. According to Gasparino, the congressman has also been in contact with SEC Chairman Gary Gensler to expand the case.

In response to this intriguing revelation, Ripple’s Attorney Jeremy Hogan, Quote Tweeted the post, asking how Sherman had arrived at his conclusion, as both parties were under Court Order not to disclose evidence to third parties.

Hogan also raised an important question:

Did the SEC violate Court rules and provide him the evidence in the case? Or, is he making recommendations to Gensler without basis?

Eleanor Terrett, the journalist who interviewed Sherman, clarified the stand shortly afterward.

“When I asked Rep. Sherman why he thinks XRP is a security he told me ‘for the reasons set forth in the SEC’s position’ and went on to explain that XRP investors relied on @Ripple efforts to bump up the price. He then said the proof that he’s right stems from the crypto exchanges.”

In an interesting turn of events, Congressman Sherman blamed Fox for the miscommunication and made his position clear on the issue. “FoxBusiness has it somewhat wrong,” he stated. “I often speak to SEC Chair Gary Gensler, sometimes about Crypto, but never regarding XRP. Only conversation I’ve had with an SEC official regarding XRP is testimony of Director Gurbir Grewal.” The politician then added a link to the testimony.

In 2020, SEC sued Ripple Labs for issuing and selling unlicensed securities, XRP tokens, to the public. SEC and Ripple have been embroiled in a legal battle ever since.