Ripple Labs has officially responded to the US Securities and Exchange Commission (SEC) complaint. Except it XRP cryptocurrency is not a security, Ripple accuses the securities regulator of getting out of step, picking winners and losers, and twisting facts about the cryptocurrency.
- In the court document filed Jan. 29, Ripple claims that XRP is not an “investment contract”, emphasizing that the crypto is “a virtual currency and thus outside the jurisdiction of the SEC”. In addition, the company stated that it has never held an Initial Coin Offering (ICO), never offered future tokens to raise money, and has no relationship with the vast majority of XRP holders.
- However, the SEC is “out of step nationally and globally,” Ripple claims. The company noted that no other regulator in the world has considered XRP to be a certainty. Ripple claims, “Essentially, the Trump administration was trying to undo the determination XRP was a virtual currency created during the Obama administration. “
- Among the regulators who have concluded that XRP is not a security, including the U.S. Department of Justice and the Financial Crimes Enforcement Network (FinCEN), Ripple noted in its response. The two American authorities determined this in 2015 and 2020 XRP is a virtual currency. In addition, the company added that the UK Financial Conduct Authority (FCA) and regulators in Singapore and Japan have similarly concluded that XRP is not a certainty.
- Ripple also accuses the SEC of “choosing winners and losers”. The company claims that “there is no fundamental distinction between them XRPcurrent position and that of BTC or ETH. Still, the SEC finds that the two cryptocurrencies are not securities. In addition, Ripple claimed that “XRP is much more environmentally friendly than BTC and ETH, since it avoids the mining process … That should matter from a policy perspective. “
- In addition, Ripple alleges that the SEC has’ distorted the facts’, stating that ‘the complaint filed by the SEC is full of fresh quotes taken out of context, drawing conclusions that are not supported by both the facts. as the law ‘.
- The SEC filed a lawsuit in December against Ripple Labs, CEO Brad Garlinghouse and co-founder Christian Larsen, alleging that they had more than 14.6 billion units of XRP, which it considers unrecorded security, for at least $ 1.38 billion. Following the SEC’s lawsuit, several major cryptocurrency exchanges have been dropped from the list XRPincluding Coinbase, Binance, Okcoin, and Blockchain.com.
- Ripple says it wants to resolve the dispute with the SEC as soon as possible, noting that since the securities watchdog has filed the lawsuit against the company and its executives, XRP lost almost half of its market value. This has led to retail XRP Investors with no affiliation with Ripple suffer billions of dollars in losses.
What do you think of Ripple’s response to the SEC’s allegations? Let us know in the comments below.
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