Ripple hit back at the U.S. Securities and Exchange Commission (SEC), accusing it of creating more uncertainty and not its duty to protect the crypto community. In the SEC’s decision to designate its XRP token as a security, the company claims that the regulator’s lawsuit amounts to an attack on the entire crypto market in the US.
XRP drawing containers affected
The latest remarks by the Ripple team follow reports of the delisting of the XRP token by Coinbase. In a brief statement issued on December 29, the firm, which will provide another response within a few weeks to address these unproven allegations against Ripple, begins by claiming that the public and the media are currently only aware of the story of the SEC.
The Ripple team then denies the SEC’s $ 1.3 billion lawsuit against the company, claiming it has affected ‘innocent XRP retailers’. Since the lawsuit was announced, the XRP token has now lost more than 50% of its value and the trend will continue as more exchanges delist the award. The Ripple statement explains:
We have always said that there is a dangerous lack of clarity about the regulation of crypto in the US – their lawsuit has already affected numerous innocent XRP retailers without connection to Ripple. It also unnecessarily made the waters mud for barter traders, market makers and traders.
Ripple customers outside the US
Meanwhile, the Ripple team, whose executives had previously threatened to pull out of the United States, also reiterated the claim that the token is traded primarily outside the country.
“The majority of our customers are not in the US and the total XRP volume is largely traded outside the US. There are clear rules for the use of XRP in, for example, the United Kingdom, Japan, Switzerland and Singapore, ”reads the Ripple Statement.
Meanwhile, the Ripple team says they are prepared to defend themselves in court, although the statement indicates that the company is also pinning its hopes on the incoming SEC leadership. The term of office of the Jay Clayton led to the management of SEC, which made the decision to file the case against Ripple, recently ended. After Clayton’s departure, attorney Elad Roisman was appointed acting chairman.
New SEC board unlikely to change course
However, others like lawyer Jake Chervinsky say the odds are still against Ripple winning, despite the board changes. In a Twitter message, Chervinsky say:
It is extremely unlikely that changes in SEC leadership will have any impact on the Ripple case. Given come. Peirce’s striking silence, I would think the vote was unanimous in favor of the submission. Regardless, the case is being prosecuted by attorneys of enforcement who are here to stay.
Interestingly, while the SEC has already ruled that bitcoin and ethereum are not securities, it has not stopped bitcoin opponents like Peter Schiff from entertaining the mind. In his latest tirade against bitcoin, Schiff weigh in the Ripple / XRP debacle by asking what would happen if the SEC also designated bitcoin as security.
Do you think the recent changes at the SEC will have an impact on the outcome of this case? Share your thoughts in the comments below.
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