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.
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