Ripple Labs Inc. is a blockchain-based payments network that is currently facing a lawsuit from the U.S Securities and Exchange Commission (SEC). On Dec. 2020, the agency filed a lawsuit against Ripple and two of its executives, alleging that they raised over $1.3 billion through an unregistered securities offering.
The SEC’s complaint alleges that Ripple sold its native token, known as “XRP,” to investors in exchange for money or other digital assets, and that Ripple did so without registering their offer and sale as securities.
The lawsuit is a major setback for the tech firm, which has long argued that XRP is not a security and should be regulated as a currency. If the SEC prevails in its lawsuit, it could force Ripple to register XRP as a security, which would subject it to much stricter regulation.
In a recent interview with Bloomberg, Ripple’s chief executive officer, Brad Garlinghouse, remained unfazed when asked about the court case against the SEC. He claimed that Ripple is already functioning as if they have lost, using this strategy to move past the case and focus on doing business as usual. Garlinghouse also slammed the U.S. for being the only country to classify XRP as a security.
He noted during the interview that Ripple, which is currently trading 83% below its all-time high of $3.84 printed in 2018, is thriving in other parts of the world, where people view Ripple and its technology more favorably. Whether Ripple wins or loses its ongoing legal battle with the SEC, Garlinghouse is confident that the cross-border payments network will continue to excel in this dynamic and rapidly-changing crypto landscape.
Despite the Commission’s major legal action, Ripple has continued to experience steady growth in recent years. Notably, one of the factors contributing to this success is the network’s strong international reach.
While XRP’s liquidity in the U.S. has dried up due to its removal from many major cryptocurrency exchanges, Ripple has seen significant growth outside of the U.S. In particular, 95% of Ripple’s clients are non-U.S. payment providers, showing that there is great demand for its products and services across the globe.
Furthermore, Ripple has been actively hiring people from all over the world, with a particular focus on regions outside of the U.S., underscoring its dedication to growing and expanding its presence worldwide. Thus, despite some turbulence here at home, it is clear that Ripple continues to flourish thanks to its global reach and ever-growing customer base.
”Justice Delayed Is Justice Denied”
Despite being hailed by many as the future of global finance, Ripple enthusiasts are still concerned that XRP might be deemed a security by the Commission. Garlinghouse went on to say that the SEC has been deliberately delaying any official rulings on the matter. He maintained that this is denying Ripple users the justice they deserve, and accused the SEC of lacking transparency in its handling of the case.
“Justice delayed is justice denied. Unfortunately, justice is being delayed here by continued efforts by the SEC to push things out,” Garlinghouse said, noting that the outcome of Ripple’s legal battle could have a significant impact on the future of the U.S. crypto industry as a whole.
As of press time, XRP is changing hands at $0.6423, down 1.20% intraday. The $30 billion market cap altcoin, whose market dominance remains at 1.70%, traded in a range of $0.6363 – $0.6553, indicating volatility over the last 24 hours.
XRP is down 24% year-to-date and a whopping 60% year-over-year.
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