Founder of Prometheum Backs SEC in Ripple Lawsuit, Sparking Reactions from XRP Community

Aaron Kaplan, the co-CEO and founder of crypto broker Prometheum, has recently expressed his support for the United States Securities and Exchange Commission (SEC) in the ongoing lawsuit against blockchain company Ripple. In an interview on the Daily Drop show, Kaplan shared his belief that the SEC is likely to emerge victorious in the case.

Citing the SEC’s previous legal battle with LBRY, an open-source content distribution company, Kaplan drew parallels between the two lawsuits. He pointed out that in the LBRY case, the judge ruled that the company had violated securities laws by selling LBRY Credits (LBC) without registering with the commission. Kaplan argued that the facts presented in the Ripple case resembled those of the LBRY lawsuit, leading him to anticipate a similar outcome.

XRP community reacts to Kaplan’s comments

Unsurprisingly, Kaplan’s comments stirred reactions within the XRP community. Many community members criticized him, claiming that he was biased for not acknowledging the differences between the LBRY and Ripple lawsuits.

Notably, attorney John Deaton’s platform, CryptoLaw, shared a comparable viewpoint. The outlet also questioned Kaplan’s understanding of the Ripple lawsuit, suggesting that his support for the SEC may be driven more by a desire to cheer them on rather than a comprehensive grasp of the case.

As the Ripple lawsuit continues to unfold, the opinions expressed by figures like Kaplan and the reactions from the XRP community and industry observers highlight the ongoing debate and speculation surrounding the outcome of this high-profile legal battle.

It is worth noting that Kaplan has consistently expressed support for the approach taken by the U.S. Securities and Exchange Commission (SEC). Recently, Kaplan had the opportunity to speak before the House Financial Services Committee, where he expressed general approval of SEC Chair Gary Gensler’s regulatory policies.