Ripple CEO Brad Garlinghouse spoke about the SEC’s lawsuit for the unrecorded sale of XRP. Brad Garlinghouse called out to the Ripple community, saying this was an unfair case. “No need to worry.” gave the message. Stating that they are right, Garlinghouse announced that they will fight against the SEC’s claims.
There has been a dialogue between Ripple and US regulators since 2017. This dialogue; It is about whether XRP is a currency or a security. The SEC has made it clear that it thinks XRP is a security with its decision this week. The regulator accuses Ripple of illegally selling $ 1.3 billion in securities.
What did the Ripple CEO say about this?
Ripple CEO Brad Garlinghouse said he found the SEC’s claims irrational. Garlinghouse; “Both the Treasury Department and the Justice Department view XRP as their currency,” arguing that the SEC’s securities claim was groundless.
The SEC sued Ripple CEO Garlinghouse and co-founder Chris Larsen for selling unregistered securities. Garlinghouse pointed out, “If we wanted to, we could sit down with the SEC with Chris and get a deal, but we won’t.” said. Garlinghouse then stated:
“Chris and I could have come to terms separately. So we would leave the incident behind us. We will not do that. This is how much Chris and I believe we are right in this case. We will attack aggressively and justify our case. As a result of this case, cryptocurrency regulations in the USA will be clear. We are not just on the case; We will rightfully be remembered in history. ”
“Don’t worry, we will defend our company”
Ripple’s CEO addressed the company’s employees, shareholders and customers. Stating that this lawsuit will not affect the company’s activities, Garlinghouse said; “I don’t want you to worry.” gave the message. Stating that the legal processes are slow, Garlinghouse signaled that it would be a difficult and long road.
Garlinghouse, on the one hand, will consider leaving the United States in this process; On the one hand, he announced that they would try to reach an agreement with the Biden administration. “We will aggressively defend our company, our team, our products and the cryptocurrency industry,” says Garlinghouse. said. Some cryptocurrency exchanges have started to remove XRP from the stock market.
Why can’t XRP count as a security?
Organizations like Coin Center do not think there is evidence that XRP is not a security. The Ripple CEO has three main arguments as to why XRP is not a security. The statement made by Garilnghouse is as follows:
- XRP is not an investment contract: people who invest in XRP do not get a share of Ripple’s revenue, they do not have any say on Ripple’s board of directors. Nothing is given to anyone who buys XRP, except XRP. In fact, most XRP investors do not have any relationship with Ripple.
- Ripple has its own shareholders: Anyone who wants to become a shareholder in Ripple does not buy XRP, they go and buy Ripple’s own stake.
- The price of XRP does not depend on Ripple: Unlike securities; XRP’s price is not affected by Ripple’s corporate performance. XRP moves in correlation with other cryptocurrencies.
It should be noted that these arguments were put forward by Ripple’s CEO and could be falsified or verified during the trial.
How has the XRP price been affected so far?
The price of XRP fell sharply as a result of the lawsuit made by the SEC. XRP, which was traded above $ 0.50 until the beginning of this week, dropped to $ 0.35 on December 23. XRP’s market value decreased by more than $ 4 billion.
Cryptocurrency research firm Santiment announced a decrease in large-scale XRP addresses referred to as “whales.” According to current data, a decrease of 18 was detected in the number of addresses that contain at least 10 million XRP coins.