Brad Garlinghouse revealed that his company has had unsuccessful attempts to settle a lawsuit for securities violations with the SEC. He also talked about the “regulatory chaos” surrounding the crypto space.
In a recent Twitter thread, the Ripple CEO said he would like to address what he called “5 key questions.” He also gave a strong denial on the SEC’s unproven allegations. He also claimed that Ripple Labs still maintains “the right side of the facts and of history.”
I’m not going to litigate the SEC’s unproven allegations on Twitter, and as you can imagine, there are new considerations to what can / should be said publicly after the litigation process starts. However, I would like to address 5 key questions I’ve seen. 1/10
— Brad Garlinghouse (@bgarlinghouse) January 7, 2021
About the SEC Lawsuit Against Ripple
In December 2020, the SEC filed a lawsuit against Ripple and its founders (Brad Garlinghouse and Chris Larsen) over the sale of XRP. The $1.38 billion lawsuit against Ripple was because the SEC categorized their sale of XRP as selling an unregistered security. Due to the lawsuit, more than 25 platforms have either delisted or suspended trading of the token. Such platforms include Coinbase, OkCoin, Bittrex, and Bitstamp.
While giving information about the lawsuit, Garlinghouse pointed out that up to 95% of XRP is being traded outside the United States. He pointed out that the token was one of the most liquid digital assets in the world. He, however, did not state if Ripple ever paid for exchanges to list XRP.
Notably, Garlinghouse refers to XRP as an open-source and decentralized token. Therefore, he claims Ripple has no control over where XRP gets listed, nor who owns it. As a result, he was unable to tell the community when the token would be relisted on the exchanges where it had been delisted.
Commenting on the lack of settlement between Ripple and the SEC, the CEO pointed out that that he can’t go into details. But he went on to say that they tried and will “continue to try w/ the new administration – to resolve this in a way so the XRP community can continue innovating, consumers are protected and orderly markets are preserved.”
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The Ripple CEO also claimed that the company has expressed disappointment in Tetragon, one of their biggest investors, who filed a lawsuit that seeks to have Ripple’s assets frozen until Ripple redeems Series C preferred stock held by Tetragon. However, Garlinghouse claimed that other investors still have faith in the company.
Furthermore, Garlinghouse pointed out that Ripple is working towards replying to the SEC’s lawsuit. He notes the legal process is slow but that a lot of stuff is happening behind the scenes. People can expect a legal reply to the SEC within a few weeks.
Before now, Ripple announced the launch of its lending product – “Line of Credit.” This product was created to provide clients access to capital on demand and perform cross-border payments using XRP.
Additionally, Ripple revealed information about its XRP-focused platform, Xumm, last May. They called it an opportunity for users to be their own bank.
As of the time of publication, XRP price was $0.300504 with a 24-hour trading volume of $7,319,449,977. XRP price also went up 10.8% over the last 24 hours. It has a circulating supply of 45.5 billion XRP coins and a max supply of 100 billion. Upbit is also the current most active market trading XRP.
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