Dark Light

Ripple has been at loggerheads with the United States Securities and Exchange Commission for quite some time now. While the SEC lawsuit has throttled its business and largely impacted its native token XRP, Ripple seems to be undeterred in its stance.

Ripple Inc announced a filing response in the Federal Court against the SEC Lawsuit.

Ripple Files Court Response and Freedom of Information Act Request

The Crypto community is closely watching the developments in the SEC-Ripple case. The US agency has filed a case against digital assets firm for selling unregistered securities in the country. While SEC has claimed that XRP is a security, Ripple has firmly defended that XRP is an open-source cryptocurrency. Two of the company’s top executives, including CEO Brad Garlinghouse, are also charged by SEC. The firm announced that it had filed a response in the federal court in defense of the lawsuit.

The firm has pressed that the lawsuit is a badly conceived legal theory, and it ignores the fact that XRP token is utilized for myriad functions that do not align with the definition of securities. It detailed that XRP is used as a digital currency for domestic and international payments.

It is used as a medium of exchange for transactions, and thus it is not security which the SEC does not have any authority to regulate. 

Ripple also has a Freedom of Information Act request along with the response to the SEC lawsuit. The request includes a query whether Ethereum cryptocurrency Ether is not a security and posed questions about Chinese controlling Ether and Bitcoin.  It is worth noting that XRP has faced much turmoil after the SEC lawsuit losing almost half of its market value. Majority of exchanges like Coinbase, Kraken, Bitstamp, etc., suspended XRP trading. The Ripple team noted that this had harmed the holders of XRP tokens who are not remotely associated with Ripple.

Ripple general counsel Stu Alderoty noted that “What’s more, part of the SEC’s mission is to maintain orderly markets… and yet their overreach created havoc in the market,” highlighting that SEC is not defending the rights of investors, which is its primary duty.

Disclaimer

The information discussed by The Coin Magazine is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Do your due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright The Coin Magazine All rights reserved.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts
Total
1
Share