Ripple has been in crisis since the lawsuit. Many companies have terminated their partnerships with XRP. XRP plummeted every day, and its market value was twice lower than LTC.
Garlinghouse responded on Twitter today. Because the lawsuit is ongoing, he can't disclose too many details, but he still wants to briefly respond to five key issues related to the SEC lawsuit.
First of all, Garlinghouse admitted that before receiving the SEC letter, Ripple had tried to settle with the SEC. He could not disclose the reason for the settlement, but Ripple would continue its intention to settle with the new government that will take office on January 20.
Next, Garlinghouse pointed out that Ripple has no way to control the decision of large exchanges to delist XRP, but most exchanges only temporarily delist XRP. He also mentioned once again that there are currently 8 different regulatory agencies in the United States, each of which has different opinions on the cryptocurrency industry, so he can understand why his peers choose a conservative approach to temporarily disassociate XRP from the relationship.
Finally, Garlinghouse talked about the lawsuit filed by investor Tetragon on Wednesday. He said that Tetragon owns 1.5% of Ripple's shares and that the company is taking advantage of the current SEC litigation for profit.
Before the Christmas holiday in the middle of last month, the Securities and Exchange Commission (SEC) sent a notification letter to Ripple founder and CEO Brad Garlinghouse, and announced the formal lawsuit against Ripple the next day, and rarely sued the company as an individual. Long Garlinghouse and co-founder Christian Larsen.
The SEC accused Ripple of illegally raising US$1.3 billion through “unregistered securities” XRP. In addition, Garlinghouse and Larsen were accused of privately selling up to US$600 million in XRP.
Ripple will officially respond in the next few weeks
Stuart Alderoty, Ripple's legal counsel, stated on Twitter that the Ripple legal team has formally responded to the SEC lawsuit in recent weeks.
Alderoty also revealed that the SEC itself has admitted that "Ripple users use legal currency to exchange XRP, then transfer XRP to users in other regions, and finally the user converts XRP into local legal currency." Alderoty affirmed that the above facts are correct. It is the perfect application of "making assets into convertible cryptocurrencies", not "securities assets" as accused by the SEC.
XRP skyrocketing
With the news that Bitcoin has recently climbed and broke new highs, it broke the $40,000 mark in one fell swoop in the early morning. Coupled with the simultaneous rise of Ethereum, the prices of altcoins have also soared. The top ten cryptocurrencies have seen significant increases within a week.
It is worth noting that XRP, which has plummeted for several days, has also been revived. Since the SEC lawsuit was issued on the 22nd of last month, the exchange has been delisted, and the market has seen a lot of selling pressure. XRP has collapsed all the way, from 0.56 within a week. The U.S. dollar plummeted to 0.18 U.S. dollars, and the price hovered between 0.19 and 0.25 U.S. dollars in the following days.
Yesterday, XRP saw a wave of gains, rising from the opening of 0.247 US dollars to 0.36 US dollars, an increase of about 45.7%, but then still lost more than 15%, the price before the deadline was 0.307 US dollars, a 24-hour increase of 15.09%.
Although the price of XRP rebounded, XRP still fell by nearly 68% compared to before the SEC lawsuit. It remains to be seen whether XRP succeeds in stopping the bleeding. In addition, XRP-based forked currency XRM performed strongly in this wave of altcoins. The internal increase was as high as 133.8%.
"Coindesk" analysts stated that the apparent growth in the prices of XRP and XRM is related to the explanation letter issued by the U.S. Currency Regulatory Agency (OCC) on Tuesday. The OCC stated in the letter that financial institutions may become blockchain nodes. XRP and XRM, which focus on payment, are both bullish news.
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