Title or no title? As we get through SEC filters on this sensitive topic, many cryptosphere projects have been pinned down. While simple fines and an agreement with the regulator are usually sufficient to resolve the conflict, a long standoff seems to emerge in the following case. Indeed, the SEC decided to sue Ripple for allegedly selling unlicensed securities in the form of XRP tokens. The society which naturally opposes such accusations denounces injustice and does not intend to surrender.
The too close proximity between Ripple and XRP is still debated
Long criticized by players in the crypto space, XRP is often taxed with centralized assets because of the role played by Ripple. The latter indeed holds half of the total supply of assets justifying that it was a donation from the creators of the cryptocurrency. It is exactly the decentralized nature of bitcoin and Ether which allowed them to escape SEC prosecution unlike XRP. According to Fortune, the court therefore decided after a vote to initiate proceedings against the company Ripple for selling XRP in the form of a security to investors.
While waiting for a trial which promises to be already tense, society has held public opinion as a witness to what it calls injustice. “By claiming that Ripple’s XRP distributions are investment contracts while maintaining that bitcoin and ether are not securities, SEC Picks Virtual Currency Winners and Losers, Destroying Consumer Friendly U.S. Innovation »States a document published on its website. CEO of Ripple, Brad garlinghouse also attacked the instance from his account Twitter denouncing a bias for Bitcoin and Ether.
Ripple would seek to settle outside the United States
Mr. Garlinghouse then claimed that the two cryptocurrencies were controlled by China and that the SEC favoritism towards them could have more serious consequences. For Ripple, a trial in this case would end up give the monopoly on innovation in the crypto space to the Chinese.
In order to anticipate such a thing, the company is currently working on find a new headquarters that would be outside the United States. She brandishes the argument that there is a lack of regulatory clarity allowing the SEC to accuse her unfairly to justify her approach. Confident, Mr. Garlinghouse nonetheless asserted that ’a negative verdict in a lawsuit would not prevent his company from continuing to prosper.
In the meantime, he is expected to be cited as a defendant along with Chris Larsen, co-founder of Ripple, in a legal battle that will be closely watched by the crypto space. The value of XRP also dropped dramatically by 13.5% following the news of the possible lawsuit.