Bitrabo Editorial
Founder and CEO of crypto brokerage firm Prometheum, Aaron Kaplan, recently expressed his support for the SEC in the ongoing Ripple lawsuit, which sparked a reaction from the XRP community. In an interview, Kaplan stated that he believes the United States Securities and Exchanges Commission will win the case against Ripple, drawing similarities to the SEC’s previous legal battle with LBRY Credits, where the judge ruled in favor of the commission.
Kaplan’s View On Ripple Lawsuit
In March 2021, the SEC filed a lawsuit against LBRY Credits, a content distribution decentralized blockchain platform, alleging that it violated securities law by offering unregistered LBC tokens. The SEC won the lawsuit, and Kaplan argued that the Ripple lawsuit shares similar facts, indicating that he expects the SEC to succeed once again.
Kaplan stated, “I anticipate the SEC will win this case as every indication points to a decision in the commission’s favor.”
Ripple Community’s Reaction
Kaplan’s projection received criticism from several XRP community members who accused him of bias in only highlighting the similarities between the two lawsuits while neglecting the differences. The CEO was called out for his remarks, with one community member questioning his credibility.
“Is it just me, or does @PrometheumInc CEO Aaron Kaplan look like the ‘poster child’ for Hucksters, fraudsters, and scam artists?”
CryptoLaw Attorney John Deaton also joined in and shared similar sentiments with the XRP community, stating that Kaplan seems to lack understanding about the XRP lawsuit and simply supports the SEC with flawed arguments.
“Very odd. Nothing about the cases cited nor even the Hinman speech itself or the warnings he got from the SEC staff about the speech support the notion that the token is a security.”
Kaplan’s Support For SEC Regulatory Policies
This is not the first time Kaplan has shown support for the SEC. He has repeatedly expressed his endorsement of the commission’s regulatory approach. During a House Financial Services Committee hearing on June 13, Kaplan openly backed SEC Chair Gary Gensler’s regulatory policies. His testimony drew attention to him and his brokerage firm.
Amid the SEC’s aggressive enforcement actions, Prometheum obtained approval for a first-ever Special Purpose Broker-Dealer (SPBD) for digital asset securities. This led the Blockchain Association to file a Freedom of Information Act (FOIA) request with the SEC seeking information about Prometheum and related records.
Featured image from Pixabay and chart from Tradingview.com