Fun

Ripple Formally Responds to SEC Allegations — Claims SEC Picking Winners and Losers, Distorting Facts About XRP

News Feed - 2021-02-01 02:02:50

Ripple Formally Responds to SEC Allegations — Claims SEC Picking Winners and Losers, Distorting Facts About XRP


Ripple Labs has officially responded to the complaint by the U.S. Securities and Exchange Commission (SEC). Besides explaining that the XRP cryptocurrency is not a security, Ripple accuses the securities regulator of being out of step, picking winners and losers, as well as distorting facts regarding the cryptocurrency. In the court document filed on Jan. 29, Ripple claims that XRP is not an “investment contract,” insisting that the crypto “is a virtual currency and thus, outside the SEC’s jurisdiction.” Furthermore, the company stated that it 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. The SEC, however, is “out of step domestically and globally,” claims Ripple. The company noted that no other regulators in the world have considered XRP to be a security. Ripple alleges that “Basically, on its way out, the Trump administration sought to undo the determination that XRP was a virtual currency made during the Obama administration.” Among the regulators that have concluded that XRP is not a security include the U.S. Department of Justice and the Financial Crimes Enforcement Network (FinCEN), Ripple noted in its response. The two U.S. authorities determined in 2015 and 2020 that XRP is a virtual currency. Furthermore, the company added that the U.K. Financial Conduct Authority (FCA) and the regulators in Singapore and Japan have similarly concluded that XRP is a not a security. Ripple also accuses the SEC of “picking winners and losers.” The company claims that “there is no principled distinction between XRP’s current function and that of BTC or ETH.” Yet, the SEC determines that the two cryptocurrencies are not securities. In addition, Ripple asserted that “XRP is a great deal more environmentally friendly than BTC and ETH, considering it avoids the mining process … That must matter from a policy perspective.” Moreover, Ripple alleges that the SEC has “distorted the facts,” stating that “The complaint filed by the SEC is full of cherry-picked quotes taken out of context, and draws conclusions that are unsupported by both the facts and the law.”


The SEC filed a lawsuit against Ripple Labs, CEO Brad Garlinghouse, and co-founder Christian Larsen in December alleging that they sold over 14.6 billion units of XRP, which it considers unregistered security, for at least $1.38 billion. After the SEC’s lawsuit, several major cryptocurrency exchanges delisted XRP, including Coinbase, Binance, Okcoin, and Blockchain.com. Ripple says it wants to resolve the dispute with the SEC as fast as possible, noting that since the securities watchdog brought the lawsuit against the company and its executives, XRP lost almost half of its market value. This has caused retail XRP investors with no connection to Ripple to suffer billions of dollars in losses.


What do you think about Ripple’s response to the SEC’s allegations? Let us know in the comments section below. US Lawmaker Likes Bitcoin — Urges Policymakers to Embrace Innovation in Regulation REGULATION | 29 mins ago Fidelity Optimistic About Bitcoin Regulation Under Biden Administration — Sees Strong Institutional Demand REGULATION | 1 day ago Tags in this story Bitcoin regulation, Crypto regulation, Cryptocurrency regulation, ripple lawsuit, ripple sec lawsuit, ripple vs sec, sec bitcoin, sec sues ripple, xrp not security, xrp security, xrp vs btc, xrp vs eth


Image Credits: Shutterstock, Pixabay, Wiki Commons Spot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

DeNations, a Blockchain-Powered Metaverse, Launches the First INO – Initial Nations Offering
DeNations, a Blockchain-Powered Metaverse, Launches the First INO - Initial Nations Offering PRESS RELEASE. Smatoos , which is already known in the blockchain in
Tron’s Steemit Acquisition Exposes Delegated-Proof-of-Stake Centralization
Tron"s Steemit Acquisition Exposes Delegated-Proof-of-Stake Centralization The Steemit community is mired in controversy over the recent Tron takeover that managed to change the
Wall Street Pepe Meme Coin Nears $64M as Trump Promises Bitcoin Supremacy
David Bailey, a crypto policy advisor and aide to Donald Trump, shared details of his discussion with the President. According to Bailey, Trump is committed to building a pro-crypto environment in the US through policy m
Biggest Movers: SHIB Remains Close to 2-Month High, as BCH Extends Recent Gains
Biggest Movers: SHIB Remains Close to 2-Month High, as BCH Extends Recent Gains Shiba inu was trading close to a two-month high on Tuesday, despite prices marginally falling from y
Dogecoin Breaks Above $0.12 Level – Time For DOGE To Catch Up?
Este artículo también está disponible en español. Dogecoin (DOGE) has finally broken through the crucial $0.12 resistance level, marking a significant milestone as it sur
Amaka Nwaokocha13 hours agoUS judge rules in favor of human ingenuity, denies copyright for AI artThis ruling shifts the conversation on AI and copyright, underscoring the significance of human creativity in intellectual
Gareth Jenkinson10 hours agoBitget releases MPC wallet, includes 2/3 private key shardingCryptocurrency exchange Bitget has released a multiparty computation wallet to improve asset security and user experience.9917 Tota
Jubilation Or Warning Sign? 90% Of Bitcoin Supply In Profit – Analysis
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Digital Yuan Giveaway: China’s Shenzhen City Hands Out 10 Million Yuan in Central Bank Digital Currency
Digital Yuan Giveaway: China"s Shenzhen City Hands Out 10 Million Yuan in Central Bank Digital CurrencyA major Chinese city is giving away 10 million yuan in the country’s cen
LBank Exchange Will List Shibnobi (SHINJA) on January 30, 2022
LBank Exchange Will List Shibnobi (SHINJA) on January 30, 2022 press release PRESS RELEASE.INTERNET CITY, DUBAI, Jan. 27, 2022 – LBank Exchange, a global digital asset tradin
Derek Andersen2 hours agoSEC chief accountant warns accountants about liabilities when auditing crypto firmsPaul Munter says making or allowing misleading statements can have serious consequences for accounting firms and
Enjin Coin Becomes the First Gaming Cryptocurrency Approved by Japanese Regulators
Enjin Coin Becomes the First Gaming Cryptocurrency Approved by Japanese Regulators Enjin coin became the first gaming cryptocurrency approved in Japan after clea