Ripple hit back at the U.S. Securities and Exchange Commission (SEC), accusing it of creating more uncertainty and failing in its duty to protect the crypto community. Looking at the SEC’s decision to designate its XRP token as security, the company claims that the regulator’s lawsuit against it amounts to an attack on the entire crypto market in the United States.
Affected XRP token holders
The latest comments from the Ripple team follow reports of the XRP token delisting by Coinbase. In a short statement released Dec. 29, the firm, which promises another “response in a few weeks to address these unproven allegations against Ripple,” begins by asserting that the public and media are currently only aware of the story of the SEC.
The Ripple team then attacks the SEC’s $ 1.3 billion lawsuit against the company arguing that it has hit “innocent retail holders of XRP.” Since the lawsuit was announced, the XRP token has now lost more than 50% of its value and the trend is expected to continue as more exchanges withdraw the token. The Ripple statement explains:
We’ve always said that there is a dangerous lack of regulatory clarity for crypto in the United States – their lawsuit has already affected countless holders of innocent XRP retailers unrelated to Ripple. It has also unnecessarily clouded the waters for stock exchanges, market makers and traders.
Ripple Customers outside the United States
Meanwhile, Team Ripple, whose leaders have previously threatened to pull out of the United States, also reiterates the claim that the token is primarily traded outside that country.
“The majority of our clients are not in the United States and the overall volume of XRP is largely traded outside of the United States. There are clear rules of conduct for the use of XRP in the UK, Japan, Switzerland and Singapore, for example, ”says the Ripple Statement.
In the meantime, the Ripple team says it is ready to defend itself in court, although the statement suggests the company is also basing its hopes on the incoming leadership of the SEC. The term of the SEC board of directors led by Jay Clayton, which made the decision to file a lawsuit against Ripple, recently ended. Following Clayton’s departure, attorney Elad Roisman was appointed interim president.
SEC’s new board likely won’t change course
However, others like lawyer Jake Chervinsky claim the odds are still against Ripple to win despite board changes. In a Twitter message, Chervinsky this:
It is extremely unlikely that the SEC’s leadership changes will have any impact on the Ripple case. Given the remarkable silence of Commissioner Peirce, I assume the vote was unanimous in favor of tabling. Either way, the case is being pursued by law enforcement attorneys who are here to stay.
Interestingly, although the SEC has already ruled that Bitcoin and Ethereum are not securities, that hasn’t stopped Bitcoin opponents like Peter Schiff from thinking. In his latest tirade against Bitcoin, Schiff weighs in the Ripple / XRP debacle by asking what would happen if the SEC similarly designated bitcoin as a security.
Do you think the recent changes at the SEC will have an impact on the outcome of this case? Share your thoughts in the comments section below.
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