Ripple Inc has grabbed many eyeballs in the crypto circles for the last few weeks ever since the United States Securities and Exchange Commission filed a lawsuit against the firm. XRP has plummeted badly while many exchanges suspended it on their platform due to legal complications following the lawsuit.
XRP investors have now filed a petition against the SEC for the losses they face due to the commission’s claim that XRP is a security.
XRP Investors Take SEC to Court for Lawsuit
XRP investors have taken the United States Security and Exchange Commission to court as they do not agree with the commission’s allegation that XRP is a security. SEC legally charged Ripple Labs and its founder Brad Garlinghouse and another top executive for selling unregistered securities worth $1.3 Billion in the United States. The lawsuit had a glaring impact on the reputation XRP token as it tumbled by more than 50 percent of its value. While the cryptocurrency markets are rallying right now, XRP is facing troubled waters, and this has raged XRP investors.
The XRP investors have filed a petition against SEC for the lawsuit claiming that it impacts American investors and said that declaring XRP as security does not align with SEC’s goal and is an against investor interest. The petition also pointed that “instead of protecting investors and Instead of protecting investors and sharing information to help investors make informed decisions the Respondent knowingly and intentionally caused multi-billion-dollar losses to innocent investors who have purchased, exchanged, received and/or acquired the Digital Asset XRP, including the named Petitioners, and all others similarly situated.”
The petition highlighted that XRP was the third-largest cryptocurrency in the world and is actively traded on the various popular cryptocurrency exchanges based in the US like Binance, Kraken and Coinbase. The petition cited that the Head of Asset Management at Swiss Bank in Singapore also classified XRP as the technology for payments in future and not as security. The petition also said that XRP is third-largest virtual currency involving business worth billions of dollars and Ripple Inc considers it as a currency and not a security. All these arguments were given to back the fact that XRP is not a security even in other countries like Japan.
The petition calls out SEC for not safeguarding Investor interests and providing fairness which is against its mission.
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