Ripple Labs pledged on Tuesday to respond to the United States Securities and Exchange Commission’s allegations against the company, as XRP was dropped from stock exchange listings and weakened after a wave of trading suspensions.
Ripple prepares responses to SEC case
The statement is as follows:
The public and press only heard the story from the SEC, and we will present our response within a few weeks to address these unproven allegations against Ripple.
The statement claims that the SEC has used Ripple to disrupt the entire cryptocurrency industry in the United States, and the company has been seeking legal clarity on digital assets for years.
Some observers believe Coinbase’s decision to suspend XRP in January could be the death knell for the digital asset as the SEC filed lawsuits for many years. Coinbase announced plans to suspend XRP trading on Monday. This was not surprising given the stock market’s public offering prospects.
XRP in freefall
XRP has been in freefall since the SEC filed a lawsuit against Ripple for alleged violations of securities laws. What happened has prompted several exchanges to remove XRP to avoid regulatory backlash. Ripple says the case “affected countless innocent XRP holders who were not affiliated with Ripple.
Meanwhile, Ripple will continue to operate and support all of its products outside of the US.
Most of our customers are not in the US and the overall volume of XRP is largely traded outside of the US For example, there are clear rules of how to use XRP in the UK, Japan, Switzerland and Singapore.
Ripple CEO Brad Garlinghouse believes that regardless of how the SEC chooses to classify XRP, his company will still be successful. This is because more than 90% of RippleNet users are outside the country.
Few in the crypto industry defended Ripple against SEC claims. D.C. based think tank Coin Center says it is not ready to claim that XRP is not a security.