Ripple has hit back at the U.S. Securities and Exchange Commission (SEC), accusing it of creating more uncertainty and failing to fulfill its duty to protect the crypto community. In panning the SEC’s decision to be 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 US.
XRP Affected token holders
The latest comments from the Ripple team follow reports from the deletion of the XRP token by Coinbase. In brief statement Released on Dec. 29, the company, which promises a fresh response within weeks to address these unproven allegations against Ripple, is starting to claim that the public and media are currently only aware of the SEC’s story.
The Ripple team then fights the SEC’s $ 1.3 billion lawsuit against the company, arguing that it affected “innocents” XRP shopkeepers. Since the lawsuit was announced, the XRP token has now lost more than 50% of its value and the trend will continue as more exchanges remove the token. The Ripple statement explains:
We have always said there is a dangerous lack of clarity about crypto regulations in the US – their lawsuit has already affected countless innocents XRP retailers without a connection to Ripple. It has also unnecessarily clouded the waters for exchanges, market makers and traders.
Ripple customers outside the US.
Meanwhile, the Ripple team, whose executives have previously threatened to withdraw from the United States, are also reiterating the claim that the token is mainly traded outside that country.
“The majority of our customers are outside the US and in general XRP volume is largely traded outside the US. There are clear traffic rules for use XRP in the UK, Japan, Switzerland and Singapore, for example, ”the Ripple statement read.
In the meantime, the Ripple team says it is willing to defend itself in court, although the statement suggests the company is also pinning its hopes on the upcoming SEC leadership. The tenure of the SEC’s Jay Clayton board, which made the decision to file the lawsuit against Ripple, has recently ended. After Clayton’s departure, lawyer Elad Roisman has been appointed the acting chairman.
New SEC board probably won’t change course
However, others, such as attorney Jake Chervinsky, say the odds are still that Ripple won’t win, despite the board changes. In a Twitter post, Chervinsky says:
Changes in SEC leadership are extremely unlikely to have any impact on the Ripple case. Given Comm’r Peirce’s striking silence, I would suspect that the vote was unanimous for the submission. Regardless, the case is being prosecuted by enforcement attorneys who stay here.
Interestingly, while the SEC has already ruled that bitcoin and ethereum are not securities, bitcoin opponents like Peter Schiff have not stopped the thought from entertaining. In his latest rant against bitcoin, Schiff weighs in the wrinkle /XRP debacle by asking what would happen if the SEC similarly labeled bitcoin a security.
Do you think the recent changes at the SEC will affect the outcome of this case? Share your thoughts in the comments below.
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