- Prometheum CEO, Aaron Kaplan, foresees a likely SEC victory in the ongoing Ripple lawsuit.
- Kaplan’s statement provokes an adverse reaction within the XRP community, accusing him of being biased.
In a recent episode of Daily Drop, Aaron Kaplan, founder, and CEO of the crypto brokerage firm Prometheum, has generated a considerable stir within the Ripple community. He vocalized his support for the United States Securities and Exchanges Commission (SEC), predicting a likely SEC win in the Ripple lawsuit, a viewpoint that roused an impassioned response among XRP followers.
Kaplan drew parallels between the Ripple lawsuit and the SEC’s past legal bout with LBRY Credits, a content distribution decentralized blockchain platform. The SEC had accused LBRY Credits of offering unregistered LBC tokens, thereby violating securities law. Kaplan indicated that the circumstances of the SEC vs. Ripple lawsuit echoed the former situation, leading him to anticipate a similar outcome. He stated,
“I anticipate the SEC will win this case as every indication points to a decision in the commission’s favor.”
However, this prediction did not sit well with the XRP community. Kaplan faced criticism for seemingly focusing solely on the commonalities between the Ripple and LBRY Credits lawsuits, while neglecting to account for the differences between the two cases. One XRP community member even went as far as to dub Kaplan as the ‘poster child’ for “Hucksters, fraudsters, and scam artists.”
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John Deaton, a CryptoLaw attorney, also chimed in with similar criticisms. He remarked that Kaplan seemed to demonstrate a limited understanding of the nuances of the Ripple lawsuit, instead choosing to celebrate the SEC with unfounded arguments.
It is not a one-off incident for Kaplan to voice his support for the SEC. He has previously expressed backing for the commission’s regulatory approach, even applauding SEC chair Gary Gensler’s regulatory policies at the House Financial Services Committee hearing on June 13. His testimony, reinforcing the SEC’s standpoint that existing securities laws can sufficiently regulate the crypto industry, has spotlighted him and his brokerage firm in the public eye.
Interestingly, despite the SEC’s stringent enforcement action, Prometheum received the green light for a first-ever Special Purpose Broker-Dealer (SPBD) for digital asset securities. Given this development, the Blockchain Association submitted a Freedom of Information Act (FOIA) request to the SEC on June 15, seeking information about Prometheum and other related records.
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