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Ripple fights back against SEC

Photo of: Joseph Stone
by Joseph Stone

The prosecution by the US stock exchange regulator caused the collapse of the XRP, which was gradually suspended on the main exchanges. Ripple denounces baseless accusations and their consequences for “countless innocent XRP holders”.

The SEC complaint continues to create chaos in the cryptocurrency market. Several exchanges have announced that they will suspend XRP in the coming weeks. This is the case for Coinbase or Crypto.com.

The first effect is a drop in the price of the token, whose value has already halved in the space of a week. By December 30, the price of the token had fallen to $0.20. The token’s value had already halved in the space of a week. A catastrophe for its holders, including Ripple.

But for the company, which finally reacted, the SEC’s decision constitutes “an attack on the crypto industry in the United States”. Moreover, the complaint is already resulting in serious financial damage.

The lawsuit affects “countless innocent XRP holders”, individuals “with no connection to Ripple”, the firm writes. In addition, it also causes a crisis for traders, exchanges and other actors.

For Ripple, the reason is simple: the SEC and its lawsuit, which results in even greater uncertainty in the market. “We have always said that there is a dangerous lack of regulatory clarity for crypto in the United States,” says the creator of XRP.

Moreover, the firm points out that other countries around the world are now providing this “regulatory clarity”. It cites the examples of the United Kingdom, Japan, Switzerland and Singapore, where XRP benefits from a permanent legal status.

Half-worded, Ripple finally calls on the public and urges patience. Indeed, to date, only the SEC has presented its arguments against XRP. The firm states that its counter-argument will be available in a few weeks.

Ripple further suggests that the regulator’s position may well change completely in the short term. The composition of the SEC is already radically different. Since his complaint, its chairman has resigned. Six other directors have also left, including the regulator’s general counsel.

In any event, Ripple will continue to operate and support products and customers in the United States. The company also states that the majority of these customers are not resident in the US. Similarly, “the overall volume of XRP is largely traded” outside the country.