XRP fell 13%, hitting an all-time low in about a week.
The US regulator has “inexplicably decided to sue Ripple,” company CEO Brad Garlinghouse said in an emailed statement. He did not elaborate on the exact nature of the lawsuit, but claimed that XRP is a currency and “should not be registered as an investment contract” – a reference to the long-standing debate over whether XRP is a security and subject to regulatory disclosures.
“The SEC has allowed XRP to function as a currency for over eight years,” he said. Ripple will challenge the lawsuit “to get clear rules of conduct for the entire industry in the United States,” he added.
XRP fell 13%, hitting an all-time low in about a week. The token has a market value of around $ 21 billion, making it the largest cryptocurrency after Bitcoin and Ether, according to data from CoinMarketCap. The lawsuit has not yet been on a litigation release list on the SEC website.
“The SEC shouldn’t be able to choose what innovation looks like,” Garlinghouse said in a tweet from his verified account. “This battle has only just begun.”
Ripple earlier this year also failed to persuade a judge to dismiss a class action proposal accusing the company of selling unregistered securities.
A request for comment from the SEC press office was not immediately returned.
The SEC – out of step with other G20 countries and the rest of the U.S. government – shouldn’t be able to choose what innovation looks like (especially when their decision directly benefits China). Make no mistake, we are ready to fight and win – this battle is just beginning. (3/3)
– Brad Garlinghouse (@bgarlinghouse) December 22, 2020
The SEC said in July 2017 that companies that raise funds through the sale of digital assets must comply with federal securities laws. Whether Ripple is a stock has been at the center of debate within the industry since the SEC comments.