XRP backers are on the lookout for any advantage Ripple might have against the SEC as the SEC vs. Ripple lawsuit continues into the new year.
The latest remarks made by the U.S. Department of Justice, which labels two cryptocurrency tokens as “commodities,” are encouraging news for XRP backers. Community members are optimistic as they see the statement as a credible resource for Ripple’s attorneys in the continuing lawsuit.
On the 28th of December, Avraham Eisenberg was arrested in Puerto Rico and charged with market manipulation for his claimed role in the breach of the decentralized exchange platform Mango Markets.
The Department of Justice (DoJ) uses the terms “CRV” and “MNGO” interchangeably throughout the file to refer to both substances as commodities. As a result, Ripple bulls are feeling optimistic that XRP, Ripple’s cryptocurrency, will be reclassified from “security” to “commodity” by the Department of Justice.
While the DOJ’s scenario is different, it has been challenged by prominent players in the crypto field.
Popular defence attorney John E. Deaton has also pushed back on similar interpretations, arguing that the wording used by prosecutors does not help Ripple’s case.
Based on his tweet he said: “It’s just not true. Legal authorities are using the term “commodity” to refer to tokens for purely ideological purposes. It makes no difference whether the commodity or securities is the underlying asset; what matters is the deception. It’s a false burden of evidence to label it security.”
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.