Legal
Ripple News: United States Department of Justice (DOJ) reportedly hinted that they will be taking action against the short selling ahead. The exercise of making a profit by betting against the stock price surge has now become a major focus for U.S. prosecutors.
Also Read: Why LBRY Latest Court Filing Is Critical For XRP Case Judgement?
Short Sellers To Be Charged?
As per a report, the chief of the DOJ’s market integrity team made crucial comments on the short selling practice. This comes in when the U.S. regional banks stocks witnessed a massive sell off in the past few months. However, three mid size U.S. banks collapsed in just five days in the month of March 2023 triggering a sharp decline in global bank share prices.
Avi Perry, a Justice Department official reportedly stated that Short selling, including via options, is a top concern for prosecutors. He warned the market of more activity over short sellers ahead. However, he hinted that actions against officials using corporate trading plans to manipulate the market.
The report mentioned that U.S. Securities and Exchange Commission (SEC) and DOJ have extensively investigated the manipulation done by short sellers, including hedge funds, since 2021. Read More Ripple News Here…
Watchdogs Unable To Provide Clarity
John Deaton, XRP holders’ lawyer in the U.S. SEC Vs Ripple lawsuit commented on the watchdog’s decision to go after short sellers. He stated that Ripple’s legal tussle with the commission depicts that free market capitalism doesn’t exist. The attorney highlighted the SEC’s inability to provide clear regulations to the market.
The SEC has been unable to prove its several assertions against Ripple in court. The commission constantly changed its claims on the infamous Hinman’s Ethereum speech and related documents.
XRP Lawyer highlighted that few unelected regulators are deciding the winners and losers in the market. Meanwhile, JPMorgan Chase can set a short bet against anyone but short sellers cannot target them back. If some traders try to do short big banks, regulators jump in to change the rules.
