the u.s. securities and exchange commission (sec) is about to sue ripple, according to a statement by ripple.
the lawsuit also says ripple’s chief executive brad garlinghouse and co-founder chris larsen will be named as defendants. ripple’s ceo, who made statements to fortune about the matter, said sec chairman jay clayton had decided to sue ripple and leave the legal business to the president afterward.
“this is an attack on the entire cryptocurrency sector and american innovation, ” garlinghouse said in a separate statement.”
the lawsuit will be filed alleging that xrp, which the company released in 2012, is a securities that must be registered with the sec.
according to the wall street journal, ripple received news monday that the sec plans to sue.
the ripple front argues that the sec’s claim is fundamentally wrong, that xrp is a currency and does not need to be registered as an investment contract. the company notes that fincen, which is affiliated with the justice department as well as the treasury department, designated xrp as a ‘virtual currency’ in 2015, and other g20 regulators agreed in the same way that no other country classified xrp as a securities.
“the sec has allowed xrp to function as a currency for more than eight years, and we question its motivation to take such a step just days before the change in management, ” garlinghouse said. instead of providing a clear regulatory framework for cryptocurrencies in the united states, jay clayton unfathomably decided to sue ripple, leaving the real legal work to the next administration. this is an attack on the entire cryptocurrency sector and american innovation. the sec chose the winners by giving its seal of approval only to bitcoin and etherís, whose networks were at the mercy of the chinese communist party. the entire industry except for these two tokens has been ignored. ignoring the advice of national security experts and the u.s. government, jay clayton is handing over the future of our global financial system to an authoritarian regime. we are right and we will fight and win aggressively.”
the price of xrp was also heavily affected by the development. the cryptocurrency depreciated more than 10 percent from $ 0.54 to $ 0.48.
ripple had been considering moving the company’s headquarters from the us for some time due to legal uncertainties. in fact, the company had recently opened a regional office in dubai. japan, britain, singapore and the united arab emirates were being considered as possible new hubs.