According to Ripple CEO Brad Garlinghouse, the U.S. Securities and Exchange Commission (SEC) is preparing a lawsuit against the company.
So far, the specific claims of the US regulator are unknown, but Garlinghouse said that the SEC’s decision is a step against the entire cryptocurrency ecosystem. It is expected that it is Garlinghouse and Ripple co-founder Chris Larsen (Chris Larsen) should become defendants in the case. Garlinghouse wrote on the social network Twitter:
“Today, the SEC decided to attack the cryptocurrency industry. The Commission’s chairman, Jay Clayton, in his latest decision, is trying to select winners and limit innovation in the US in the cryptocurrency industry. We know that cryptocurrencies and blockchain will thrive. Ripple will continue to use XRP, because it is the best digital asset for payments-fast, cheap, scalable and energy efficient. The SEC, even together with regulators in other countries and the support of the US government, should not choose innovation, especially if the choice directly helps China. We are ready to fight in court and ready to win, the battle is just beginning!”
According to The Wall Street Journal, the lawsuit will focus on whether to recognize XRP as a security and register this asset with the SEC. In May, Bitcoin Manipulation Abatement filed a lawsuit against Ripple, accusing the company of defrauding investors and selling XRP as unregistered securities.
Meanwhile, the debate continues over whether XRP can be considered a security. Unlike BTC and ETH, which are mined gradually, Ripple issued 100 billion XRP overnight in 2012, and remains the holder of the overwhelming number of coins. This is really similar to the actions of companies issuing shares.
Analyst Peter Brandt believes that XRP should be recognized as a security. However, former chairman of the Commodity Futures Trading Commission (CFTC) Christopher Giancarlo (Cristopher Giancarlo) and Congressman Tom Emmer (Tom Emmer) stated that, in their opinion, XRP is not a security.
Earlier, the CEO of Ripple said that the company may relocate from the United States to the United Kingdom due to pressure from American regulators.