A recent court verdict that Ripple’s XRP is not a security has drawn the ire of U.S. Congressman and crypto skeptic Brad Sherman.
Sherman, who is no stranger to controversy among crypto circles, called the ruling “ridiculous”.
Rep Sherman Labels Ripple Court Verdict “Ridiculous”
A U.S. lawmaker has criticized the Ripple court decision, a stance that will ruffle the feathers of XRP enthusiasts.
On July 13, 2023, Judge Analisa Torres of the United States District Court for the Southern District of New York ordered that XRP should not be considered a security when sold on retail digital asset exchanges in the U.S. Securities and Exchange Commission’s (SEC) case against Ripple. However, the Judge said the institutional sale of the XRP token did violate federal securities laws.
While the digital asset industry welcomed the partial victory, Congressman Brad Sherman (D-Calif.) is not a fan of the landmark judgment. The California-based accountant turned politician said during a congressional hearing on Wednesday that XRP is always a security. This is contrary to the court’s interpretation of XRP’s complex nature as both a crypto asset and a technology for real-time, economical remittances.
Sherman, who currently serves as Chairman of the Subcommittee on Investor Protection and Capital Markets, also shared his view on the uses of cryptocurrencies, claiming that they mostly serve bad actors seeking to evade taxes or commit fraudulent activities. The Congressman further cautioned against the illegal uses of cryptocurrency, stressing concerns regarding human trafficking and sanction violations.
In Sherman’s view, the word “cryptocurrency” indicates hidden money, which becomes second-fiddle to even the Uruguayan peso once its hidden element is eliminated.
Sherman Tackles Crypto
This isn’t the first time Brad Sherman has taken a hard line on crypto.
The Congressman, who once said that all Bitcoin does is allow “a few dozen men in my district to sit in their pajamas on their couch all day and tell their wives they are going to be millionaires,” has previously drawn public criticism for some of his more audacious statements about crypto assets.
Speaking to CNBC recently, Sherman was questioned on whether the current regulatory enforcement actions suggested the end of cryptocurrencies in America. “I hope so, don’t think so,” was his concise answer.
In the Wednesday Congressional hearing, Sherman also likened the pseudonymous Bitcoin creator Satoshi Nakamoto to Charles Ponzi, the notorious Italian swindler famous for the Ponzi scheme.
Meanwhile, the SEC is mulling launching an appeal of the split-decision XRP ruling in the courts as it believes it was flawed.