The SEC lawsuit against Ripple is driving controversy between the two parties. Ripple, the fintech firm that created XRP, opines that the Securities and Exchange Commission causes more confusion with the lack of clarity in its regulation.
The crypto firm asserts that the recent suit is an attack against the crypto industry in America and that the body causes more confusion than the protection it claims it gives. The lawsuit made XRP lose a sizeable amount of shares at an alarming rate. XRP holders are changing positions and selling their assets to prevent the recent suit’s damage to their investments.
Ripple to protect other companies against an unjustified lawsuit
The firm explained the claim made some prominent industry players silent as regards the charge. Despite new developments, the firm promises to support and help products and customers within and outside the USA. Ripple’s top executive, Brad Garlinghouse, had once said viewing his firm’s cryptocurrency is like comparing oil to stocks.
The Ripple team said XRP was not registered as a security because it is a true currency. The US regulatory body did not accept that claim and accused the parties involved of violating investors’ right to information concerning the product and making them vulnerable.
Interestingly, the crypto’s investors are crying out against SEC’s actions due to the continuous drop in their holdings’ value. The firm’s CEO also asserts that the team will fight for the rights of other companies who were unjustifiable sued by the regulatory body.
The group said it would not tolerate any further bullying of the highly esteemed industry. The suit brought so much damage to Ripple in the crypto market. Recently, Coinbase removed it from its trading venue, so traders cannot trade XRP tokens.
Ripple says the lawsuit hurts innocent XRP holders
The company said this via an announcement concerning the claims. It revealed that it had affected XRP investors who had no business with Ripple, and this has instigated them to prove their innocence concerning that. Ripple admitted that most of their tokens are traded outside America, with significant volumes from the UK and Switzerland.
The company explained the currency’s primary creation is to give a secured payment globally for the crypto holders. The fintech firm revealed that it would release a detailed explanation of their claims and still stand adamant on their previous position.
The SEC team claims that the US-based firm violated American laws by selling $1.3 billion worth of unregistered offerings. The company is also looking forward to working with the new executive, Elad Roisman, a famous critic of accredited investors.
He had earlier on worked in the background but now heads the agency. Roisman is also the temporary head of institutions until President-elect, Joe Biden, elects his preferred person to hold the seat. Former SEC Chair, Jay Clayton, stepped down from office on Wednesday, which necessitated Roisman’s new position to fill the vacant seat. The crypto community is silent concerning Ripple’s suit, and MoneyGram just clarified the firm’s association with it.