Ripple CEO: We are right in XRP case, we will fight
Ripple CEO Brad Garlinghouse has spoken out about the lawsuit the SEC will file over the unregistered sale of XRP. Brad Garlinghouse addressed the Ripple community, saying it was an unfair case and said, “there’s no need to worry.”he gave the message. Garlinghouse said they would fight the SEC’s claims.
There has been an ongoing dialogue between Ripple and US regulators since 2017. This dialogue is about whether XRP is a currency or a securities. The SEC made it clear this week that it thinks XRP is securities. The regulator accuses ripple of selling $ 1.3 billion worth of securities informally.
What did the CEO of Ripple say about that?
Ripple Chief Executive Brad Garlinghouse said the SEC found the allegations irrational. Garlinghouse argued that the SEC’s securities claim was unwarranted, saying,” both the Treasury Department and the Justice Department view XRP as currency.”
The SEC sued Ripple CEO Garlinghouse and co-founder Chris Larsen for selling unregistered securities. Garlinghouse said, ” If we wanted to, Chris and I could sit down at the table with the SEC and get a deal, but we won’t.” said. Garlinghouse subsequently stated that:
“Chris and I could have come to terms separately. So we could put it behind us. We won’t do that. That’s how much Chris and I believe we’re right about this case. We will attack aggressively and justify our cause. As a result of this case, cryptocurrency regulations in the United States will be clarified. We will be rightly remembered not only in the case, but also in history.”
“Don’t worry, we will defend our company”
The CEO of Ripple addressed the company’s employees, shareholders and customers. Garlinghouse, who said the case would not affect the company’s activities, told the audience, “I don’t want you to worry.”he gave the message. Garlinghouse, who said that the legal process is heavy, signaled that this will be a difficult and long road.
In the process, Garlinghouse announced that they would consider leaving the United States, and on the one hand, they would try to negotiate with the Biden administration. “We will aggressively defend our company, our team, our products and the cryptocurrency sector, ” Garlinghouse said.” said.
Why can’T XRP count as securities?
Organizations such as the Coin Center do not think there is evidence that XRP is not securities. Ripple CEO has three main arguments as to why XRP is not a securities. The statement by Garilnghouse is as follows:
- XRP is not an investment contract: people who invest in XRP do not receive a share of Ripple’s income, they do not have any say on Ripple’s board. The person receiving XRP is not given anything except XRP. In fact, a large proportion of XRP investors have no relationship with Ripple.
- Ripple has its own shareholders: someone who wants to be a shareholder in Ripple doesn’t buy XRP, they go and buy Ripple’s own stock.
- The price of XRP is not tied to ripple: unlike Securities; the price of XRP is not affected by Ripple’s corporate performance. XRP moves in correlation with other cryptocurrencies.
It should be noted that these arguments were put forward by the Ripple CEO and may have been wrong or verified during the trial.
How has the XRP price been affected so far?
The price of XRP fell sharply as a result of a lawsuit filed by the SEC. XRP, which had traded above $ 0.50 earlier this week, was down as much as $ 0.35 on December 23. The market value of XRP has been reduced by more than $ 4 billion.
Cryptocurrency research organization centiment announced a reduction in large-scale XRP addresses, referred to as” the whale”. According to current data, an 18-unit decrease in the number of addresses containing at least 10 million XRP coins was detected.