CEO of payments technology firm Ripple, Brad Garlinghouse, has said that US Securities and Exchange Commission (SEC) lawsuit against XRP is an attack against the broader “crypto” market.
The CEO is ruffling feathers with this statement. Several industry experts refuse to take sides with Garlinghouse. Online sentiment among industry participants towards the lawsuit agrees with the SEC’s view that XRP is an unlicensed security.
SEC vs XRP
Brad Garlinghouse in an interview with Fortune Magazine said that he is expecting the company to be sued by the SEC. The CEO said Ripple faces accusations of selling unlicensed securities in the form of its XRP token. Both Ripple CEO Brad Garlinghouse and co-founder Chris Larsen will be defendants in the suit.
Currently, the firm still has ongoing trials from aggrieved investors over the same accusation.
Showing preparedness, the CEO said that when the lawsuit comes, they would fight back. In a statement, he said “The SEC is fundamentally wrong as a matter of law and fact. XRP is a currency and does not have to be registered as an investment contract.
According to Garinghouse, the case was a “parting shot” by outgoing SEC chair Jay Clayton.Such allegations may backfire on the CEO, however.
Hours after Garlinghouse claims, the SEC announced that they have charged Ripple and two executives with conducting an $1.3 billion unregistered securities offering.
SEC charges Ripple and two executives with conducting $1.3 billion unregistered securities offering https://t.co/3VP23RpSyV
— SEC_News (@SEC_News) December 22, 2020
XRP Plunges Hard
This entire debacle is already taking a toll on XRP. The crypto has plunged by 18 percent.
At press time, XRP is trading at around $0.33, down 30.4% on the day, according to CoinMarketCap. Prior to the news, the token’s price amounted to roughly $0.58.
Ripple’s market capitalization was around $23 billion before the lawsuit claims. It has reduced to $15.4 billion as of press time.
Reactions after Garlinghouse comments XRP lawsuit is an attack against crypto
Industry players in the crypto space have disagreed with Garlinghouse’s claims that an attack on XRP is an attack on crypto.
Criticizing Garlinghouse claims, CSO of Bitcoin development firm Blockstream Samson Mow said there was “nothing crypto or innovative about XRP or Ripple,”. Bitcoin educator and investor Stephan Livera said that “Ripple had nothing to do with Bitcoin,” adding that Garlinghouse’s “attack on crypto” comment was irrelevant.
Here are what other industry players have to say regarding the matter as it currently stands.
Well even though I didn't wake up to a new ATH, this still got a smile on my face though.
Literally everyone in crypto knew how $XRP (a security) got dumped on retail by Ripple and no this is not an attack on "crypto", this is an attack on scammers. 🤷♂️https://t.co/oq7JlgDIv7
— WhalePanda (@WhalePanda) December 22, 2020
SEC Was Totally Justified, Ripple Is A Security IMO
Crypto Is Just Fine Without You
Infact, No One Wants Or Needs Your Product
Just A Setup On Normies Where You Hold All The Bags
And My Ripple Shorts Are Doing Great
Have Fun Staying Poor
— Alex Wice (@AWice) December 22, 2020
— Evan Van Ness (@evan_van_ness) December 22, 2020
We'll have plenty of time to talk about the merits of the SEC's Ripple enforcement action after the complaint comes out.
Right now, the big question is if centralized exchanges delist XRP while the case is pending.
I bet a lot of lawyers are setting emergency calls right now.
— Jake Chervinsky (@jchervinsky) December 22, 2020
Is XRP an asset or security? If Garlinghouse’s claims are valid and SEC eventually files a lawsuit against XRP, what do you think will eventually happen?
Share your views in the comment section below!