2021 has been all smiles to cryptocurrencies and every aspect of the crypto industry except XRP and Ripple.
XRP has not enjoyed a big surge like other coins; likewise, Ripple may be on the verge of collapse with the Security and Exchange Commission’s lawsuit against the firm. The firm’s future hangs in the balance as it faces one of the industry’s riskiest lawsuits.
Another blow Ripple has endured this year is the pessimism surrounding XRP born out of the SEC lawsuit. It has lead many investors to sell their coins and distinguish themselves from the XRP army.
Amidst all these setbacks, Brad Garlinghouse has tried to be diplomatic in his approach to see that SEC actions against the firm end. However, no positives have come out of it. Investing in lobbying, external audit, and relocating from the US have been ways the CEO has tried to avoid the SEC’s hammer, but none has been successful.
Garlinghouse’s brilliant idea to rescue XRP
The CEO took to Twitter to address the SEC lawsuit and their effort to resolve the problem out of court.
Garinghouse noted that Ripple would continue to try with Joe Biden’s administration. It is safe to say that the firm is pinning its hopes on some endorsement from a new, more crypto-friendly administration.
They also urged future legislators to have a little more common sense when addressing the crypto industry issues.
Watering down allegations
Reacting to allegations that Ripple paid exchange firms to list XRP, which the regulators call a ‘security’ rather than an asset, Garlinghouse said that “Ripple has no control over where XRP is listed, who owns it, etc. It’s open-source and decentralized,” Garlinghouse said, without explicitly denying the rumours.
He said that what exchanges are doing now is more preventative than definitive measures. He explained that there is a difference between delisting and suspending, so the decision of some exchanges “comes as no surprise.”
Tetragon compounds Ripple woes, Garlinghouse reacts
The firm had not much to say after exchanges chose to act against XRP and Ripple with suspension and delisting threats. Similarly, when partners like Moneygram said they would adopt the wait and see approach before deciding whether to continue doing business with Ripple, the XRP developers did not react to these claims.
However, Garlingouse expressed disgust at Tetragon suing Ripple in the wake of its SEC crisis.
Tetragon filed its complaint on Monday in Delaware Chancery Court. It asked to “enforce its contractual right to require Ripple to redeem” Series C preferred stock, per the report.
Tetragon that led Ripple’s Series C funding also wants to block Ripple from using any cash or other liquid assets until the payment is made.
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
Garlinghouse, in his reaction, criticized the investor’s decision to sue Ripple, making things even more difficult for the company. He says they are seeking to advantage through SEC allegations unfairly.