- Blockchain company Ripple (XRP) presented its first official response to the allegations in the lawsuit announced by the US Securities and Exchange Commission in December. Ripple’s general counsel, Stuart Alderoty, shared the company’s legal response to the SEC.
Ripple has submitted its official response to the court against SEC claims!
The US Securities and Exchange Commission (SEC) has formally sued Ripple in recent months. As part of this lawsuit, the SEC accuses Ripple and its CEO, Brad Garlinghouse, and co-founder Chris Larsen of selling $ 1.3 billion of unrecorded securities through XRP.
Lawyer: “XRP’s Price Is Artificially Suppressed By Ripple Case”
Ripple recently submitted its first official response to the SEC’s claims under the lawsuit. Ripple’s defense is outlined in a new blog post by Stuart Alderoty, the company’s general counsel. Here are seven arguments Ripple outlined in its official response:
- XRP is a cryptocurrency and therefore is outside the SEC’s jurisdiction.
- Ripple has not entered into an investment contract with any XRP owner.
- Ripple has never run an ICO, has never used future tokens to raise money, and has no relationship with the vast majority of XRP holders.
- Having XRP does not mean that a person will receive a portion of Ripple’s income or profits.
- Ripple’s XRP sales accounted for much less than 1% of the huge XRP market that has grown in the past 8 years.
- XRP Ledger, on which XRP moves, is completely decentralized. SEC is ignoring the economic reality of an XRP transaction.
- Ripple’s XRP holdings do not form an investment contract as DeBeers holdings convert diamonds into securities.
- “SEC’s Ripple and XRP Decision Is Nonsense!”: Statement From Famous Investor
Ripple CEO Brad Garlinghouse: The laws are out of date!
Ripple emphasizes that the SEC is incompatible with regulations on a global scale, pointing out that XRP is considered a cryptocurrency by the UK’s Financial Conduct Authority. In its defense, the company argues that the XRP cryptocurrency is incompatible with current securities regulations. Also, Ripple CEO Brad Garlinghouse claims that securities laws are obsolete. Brad Garlinghouse said:
OUR DEFENSE BEGINS TODAY. INNOVATION IS AT TRIAL STAGE AND WE STAND UP SHOULDER WITH OUR PARTNERS AND COMMUNITY TO DEFEND IT. WITH APPROPRIATE LEGAL OBSERVATION, WE CAN EXPRESSLY MODERATE THE UNDERSISTRED LAWS TO PROTECT CONSUMERS AND PROVIDE REGULAR MARKETS.
Ripple: XRP is no different from Ethereum and Bitcoin!
The blockchain company argues that there are no “principal distinctions” between Bitcoin or Ethereum and XRP, two non-securities cryptocurrencies in SEC’s view. Moreover, Stuart Alderoty adds that the fifth largest cryptocurrency is environmentally friendly as it is not based on a proof-of-work algorithm.
A Second Airdrop Coming to Ripple (XRP) Owners! Here are the Details
However, unlike Bitcoin, XRP is affiliated with Ripple Labs, so it is considered a centralized cryptocurrency by critics. Stephen Palley, Anderson Kill’s lawyer, stated that Ripple’s response to the allegations in the case was “fictitious.” Stephen Palley said on the subject:
THE RIPPLE RESPONSE IS A DREAM PRODUCT IF SOMEONE IS CURIOUS.