Altcoins, Bitcoin, Blockchain, Cryptocurrency, Hot News, News & Updates

SEC Enforcer Steps Down, Is this a Win for Ripple?

The Securities and Exchange Commission‘s Acting Enforcement Director Marc P. Berger managed the high-profile enforcement actions against crypto ICOs.

Named Deputy Director of the Division of Enforcement at the US SEC last August 2020, Marc P. Berger is leaving the agency before the end of the month, a press release from SEC says. He was appointed acting director of the division after Stephanie Avakian left SEC in December.

Although Berger’s time in the top position was short, it carries at least one major highlight: the SEC’s $1.3B lawsuits against Ripple Labs, CEO Brad Garlinghouse, and Executive Chairman Chris Larsen.

exchange bitcoin

The lawsuit, which was revealed at the tail end of Avakian’s tenure, alleged that Ripple didn’t register the sale of XRP, the third-largest cryptocurrency by market capitalization. The SEC views XRP as security – a tradeable investment contract that raises funds for a business or organization.

Ripple was founded by Larsen, Arthur Britto, Jed McCaleb, and the current Ripple CTO, David Schwartz. It aims to be a cryptocurrency that enables banks to transfer money more efficiently. However, according to the SEC, Larsen and Garlinghouse sold XRP to get rich by the company. The SEC also alleged that Ripple paid companies to use XRP and then boost up the price.

The lawsuit filed in New York federal court on December 22 has sent XRP’s price to go spiral. On December 21, the asset traded to as high as $0.55. It is now at $0.29 and has been delisted by several exchanges like Coinbase.

Berger has also taken partial credit for the SEC’s enforcement action versus Telegram, which compelled the messaging software company to return $1.2B to those who have invested in its cryptocurrency offering. “Grams” digital tokens never got off the ground.

Furthermore, aside from ICO-related enforcement actions, Berger also played a role in enforcing securities laws and protecting investors by taking action versus prominent firms Robinhood Financial LLC, Deutsche Bank AG, and Luckin Coffee.

Things are flowing at the SEC as the federal government transitions from a Trump presidency to a Biden administration on January 20. President-elect Joe Biden is anticipated to name previous Commodities and Futures Trading Commission Chair Gary Gensler to take SEC chair’s role, and Jay Clayton stepped down last December.

The SEC hasn’t yet named a new enforcement director.

Leave a Comment

Leave a Reply