Ripple Formally Responds to SEC Allegations – Claim the SEC Picks Winners and Losers, Distorting the Facts About XRP – Bitcoin News Settlement

Ripple Labs has officially responded to the complaint from the United States Securities and Exchange Commission (SEC). In addition to explaining that XRP cryptocurrency is no security, Ripple accuses the securities regulator of being out of step, picking winners and losers, as well as distorting the facts about the cryptocurrency.

• In the court document filed Jan. 29, Ripple asserts that XRP is not an “investment contract”, insisting that crypto “is virtual currency and therefore, outside the jurisdiction of the SEC.” Additionally, the company said it never held an Initial Coin Offering (ICO), never offered future tokens to raise funds, and had no relationship with the vast majority of coin holders. XRP.

• The SEC, however, is “out of sync nationally and globally,” says Ripple. The company noted that no other regulator in the world has considered XRP a security. Ripple alleges that “Basically, on exiting, the Trump administration sought to overturn the determination that XRP was a virtual currency made under the Obama administration.”

• Among the regulators who have concluded that XRP is not security are the US Department of Justice and the Financial Crimes Enforcement Network (FinCEN), Ripple noted in its response. The two US authorities determined in 2015 and 2020 that XRP was a virtual currency. Further, the company added that the UK Financial Conduct Authority (FCA) and regulators in Singapore and Japan have also concluded that XRP is not a security.

• Ripple also accuses the SEC of “picking winners and losers”. The company claims that “there is no distinction in principle between the current function of XRP and that of BTC or ETH.” Still, the SEC determines that the two cryptocurrencies are not securities. Further, Ripple claimed that “XRP is much more environmentally friendly than BTC and ETH, given that it bypasses the mining process… It must matter from a political point of view. “

• Further, Ripple alleges that the SEC “distorted the facts”, stating that “the complaint filed by the SEC is full of handpicked quotes taken out of context, and draws conclusions that are not supported by the facts. and the law. ”

• The SEC filed a lawsuit against Ripple Labs, CEO Brad Garlinghouse and co-founder Christian Larsen in December, alleging it sold more than 14.6 billion units of XRP, which it considers unregistered security, for at least $ 1.38 billion. After the SEC lawsuit, several major cryptocurrency exchanges deregistered XRP, including Coinbase, Binance, Okcoin, and Blockchain.com.

• Ripple says he wants to resolve the dispute with the SEC as quickly as possible, noting that since the securities watchdog took legal action against the company and its executives, XRP has lost nearly half of its market value. This caused billions of dollars in losses to unrelated retail XRP investors.

What do you think of Ripple’s response to the SEC allegations? Let us know in the comments section below.

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