SEC to Sue Ripple Over XRP Cryptocurrency — CEO Insists XRP Is Not a Safety

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The US Securities and Exchange Commission, according to Brad Garlinghouse, CEO of Ripple, will bring a lawsuit against Ripple over the XRP cryptocurrency, which it regards as collateral. He insists that XRP is not a security, citing the SEC’s lawsuit as an attack on the cryptocurrency inconsistent with the G20 countries and the rest of the US government.

SEC calls lawsuit against Ripple Over XRP, CEO calls it an attack on Crypto

According to reports, the SEC is due to file a lawsuit against Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen for selling the XRP cryptocurrency. Ripple said it received a notice from regulators on Monday alleging it violated laws governing the sale of unregistered securities when it was selling XRP to investors. The news drove the price of XRP down sharply, falling about 15% early Tuesday morning.

Expecting the lawsuit to be filed in the next few days, Garlinghouse tweeted on Monday:

Today the SEC decided to attack crypto. Chairman Jay Clayton picks the winners in his final act and seeks to limit US innovation in the crypto industry to BTC and ETH.

Garlinghouse insists that XRP, like Bitcoin, is not a security and calls the SEC lawsuit “fundamentally false for legal and factual reasons.” The SEC chairman Jay Clayton is stepping down at the end of the year.

Ripple argues that XRP is not a security, questions the SEC’s timing for the lawsuit

Garlinghouse argued that “XRP is a currency and does not need to be registered as an investment contract.” He noted that “The Department of Justice and the Treasury Department’s FinCEN determined XRP was a virtual currency back in 2015 and that other G20 regulators did the same. No other country has classified XRP as a security. “

Yoshitaka Kitao, president of SBI Holdings, a Ripple partner, noted that the Financial Service Agency (FSA) in Japan “has already made it clear that XRP is not a security,” adding that he is “optimistic that Ripple is up.” in the EU will prevail final decision in the US. “

Claiming that the SEC “is not keeping up with other G20 countries and the rest of the US government” and the agency “should not be able to figure out what innovation looks like,” Garlinghouse said:

Ripple has and will continue to use XRP … Make no mistake, we are ready to fight and to win – this fight is just beginning.

The CEO questioned the SEC’s motive and timing of the lawsuit. “The SEC has approved XRP as a currency for over eight years, and we are questioning the motivation to file this lawsuit just days before the change in administration,” he began. “Instead of creating a clear legal framework for crypto in the US, (SEC chairman) Jay Clayton inexplicably decided to sue Ripple – and let the next government do the real legal work.”

Due to the US crypto rules, Ripple has considered moving its headquarters to a more crypto-friendly jurisdiction such as London, Switzerland, Singapore, Japan or the United Arab Emirates.

What do you think of SEC suing Ripple over XRP? Let us know in the comments below.

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