Brad Garlinghouse, CEO of Ripple, responded to some concerns about the $ 1.3 billion lawsuit filed by the SEC via Twitter.
Ripple comments : Brad Garlinghouse, CEO of Ripple, responded to some concerns about the $ 1.3 billion lawsuit filed by the SEC via Twitter. However, people don't seem to buy it for their response. Since the news of the SEC lawsuit came out, more than 25 platforms including Coinbase, Bittrex, OKCoin and Bitstamp have suspended trading or removed XRP.
Ripple CEO Brad Garlinghouse revealed that the company was trying to negotiate with the US Securities and Exchange Commission (SEC) to resolve unsuccessful litigation over its token sale, and criticized the "regulatory confusion" surrounding cryptocurrency.
"I will not accuse the SEC in a lawsuit that has not been confirmed on Twitter. As you can imagine, once the trial begins, there will be new considerations about what can / should be said publicly. However, I hope that I see 5 key questions as answers. .
-Brad Garlinghouse ( @bgarlinghouse ) January 7, 2021 "
In a Twitter post about what he called the "5 major issues", the CEO emphatically denied the "baseless SEC accusations" and claimed that his company "is on the right side of facts and history." .
Garlinghouse stated that Ripple will continue its efforts to reach a settlement with the SEC:
"We have worked hard - and will continue to work hard to work with the new government - to solve this problem, thereby ensuring the XRP community can continue to innovate, consumers are protected, and an orderly market is maintained."
The US Securities and Exchange Commission filed a $ 1.38 billion lawsuit against Ripple, Garlinghouse and co-founder Chris Larsen in December for the sale of XRP as an unlisted security. Since the news, more than 25 platforms including Coinbase, Bittrex, OKCoin and Bitstamp have suspended trading or deleted the token.
Garlinghouse didn't directly talk about whether Ripple ever paid an exchange to support XRP. However, he said that XRP is one of the most liquid digital assets in the world, and 95% of transactions are carried out outside the United States, and he cannot answer when the token will be listed again. He pointed out that "Ripple has no control over where XRP is registered and who owns it." He said that XRP is open source and decentralized.
However, Garlinghouse's answer leaves many readers more dubious:
"You're not really answering whether a company pays for listing on a particular exchange. Do you?
-Ryan Selkis ( @twobitidiot ) January 7, 2021 "
Garlinghouse said the company was disappointed that one of their biggest investors, Tetragon, which owns 1.5% of the company, filed a lawsuit. However, he said that other investors in the company still believe in Ripple.
Garlinghouse said that Ripple is currently drafting a response to the lawsuit and will respond in a few weeks, adding that Ripple's general counsel Stuart Alderoty will provide more information.
The CEO of Ripple said he is more optimistic about the opportunities for proper regulation in 2021, and he hopes the Digital Commodity Exchange Act will be reintroduced.
"In the United States, we have gone from a lack of regulatory clarity to regulatory chaos, which is why monitoring poor public policy through law enforcement. Under the leadership of the new government, we hope that #DCEA isreintroduced - legislation that makes sense. It will provide clarity. for the entire industry. "
For the company behind the fourth-ranking cryptocurrency by market cap, this controversy is nothing new. In recent years, Ripple has been criticized for large-scale liquidation of tokens, alongside a class action lawsuit accusing Garlinghouse of misleading investors over the appeal of XRP.
Despite recovering 48% this week, according to CoinGecko data, the token price is still 44% lower than it was 30 days ago.
Before the US Securities and Exchange Commission filed a lawsuit against Ripple, the agency had successfully won cases against Telegram and Kik, two social media platforms, because these two platforms violated US securities laws regarding ICOs.
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