Brad Garlinghouse, CEO of Ripple, has responded to the recent lawsuit against XRP and assured shareholders that the company will prove its case in court.. In a blog post on December 22nd, Garlinghouse argued this The lawsuit initiated by the US Stock Exchange and Securities Commission against XRP’s cryptocurrency is an “attack on cryptocurrencies in general”..
The executive is confident that the regulation will have a “snowball effect” across the industryThis may affect important players like Coinbase and all other cryptocurrencies, not just Bitcoin (BTC) and Ether (ETH):
“Ripple, Chris and I may be named in the file, but this is an attack on cryptocurrencies in general. In this case, XRP is a replacement for every other ‘altcoin’ in the room. From there you have a snowball effect; This is not good news for market makers, exchanges like Coinbase, etc. This is a terrible precedent for any company that deals with digital assets. “
Garlinghouse went on to say that the SEC “is involved in a major attack on the cryptocurrency industry”.despite the regulator saying it is committed to promoting innovation in digital assets.
But Ripple will prove his case in court, Garlinghouse said. The CEO emphasized that XRP is not an “investment contract” as the owners have no affiliation or relationship with Ripple. Garlinghouse emphasized that too The market value of XRP, unlike the values, does not correlate with the activities of Ripple. “Not only are we on the right side of the law, we’ll be on the right side of history,” Garlinghouse said.
The CEO also stated that The SEC’s action also causes Ripple to relocate its headquarters outside of the United States. However, the company continues to hope to work with the new government to find a solution. As previously reported, Japan is the lead candidate for Ripple’s new headquarters. Garlinghouse announced this in early December US investors make up only 5% of Ripple’s global customers.
On December 22nd, the SEC filed a lawsuit in Manhattan Federal District Court alleging XRP was a security and accusing Ripple of breaking the law by raising more than $ 1.3 billion.. Some industry players later claimed they would make no effort to resist the SEC’s decision to consider XRP a security.
Amid reports of upcoming legal action against Ripple, The XRP fell 21% on December 22nd. At press time, XRP is down 22% in the past 24 hours, trading at around $ 0.35.