Ripple Chief Calls SEC Allegations “Abuse” of Power


Ripple CEO Brad Garlinghouse announced his intention to file a motion to dismiss the exchange regulator’s allegations due to abuse of power.

March 4, 2021 | AtoZ Markets – Ripple chief executive Brad Garlinghouse has filed a letter of intent to petition to dismiss the updated charges from the US Securities Exchange Commission (SEC). He wrote about this on his Twitter page.

According to the letter, the exchange regulator actually acknowledged the flaws in its original complaint by amending the charges on February 18, 2021. At the same time, as noted in the letter, the adjusted complaint of the regulator has not improved.

“To put it simply, SEC approvals are an abuse of office,” Garlinghouse said.

Read also: Ripple Executives Manipulated XRP Price, SEC Alleges

SEC could not clearly explain its accusations, says Garlinghouse

According to Garlinghouse, the SEC failed to properly explain the nature of the accusations, according to which Garlinghouse allegedly knew or recklessly ignored the fact that XRP transactions were investments.

However, despite the litigation, the fintech company intends to continue moving towards the digitalization of banking services. For example, Ripple announced the testing of a private version of the XRPL registry for central banks. It is assumed that with its help financial institutions will be able to create and manage their digital currencies (CBDC).

However, such an announcement has not yet affected the development of the XRP token. Even in the announcement itself, Ripple decided to minimize the mention of XRP by noting only the token turnover within the XRPL registry. Nevertheless, the XRP community considered this news sufficient for a short-term rise in the price of the asset.

Source: TradingView

At the time of this writing, the token in the XRP/USD pair is up 2.5% and is trading at $0.44.

Earlier, AtoZ Markets reported on the first court hearings in the SEC case against Ripple.

Related: Update — Preliminary Hearings in SEC vs. Ripple Case

So, during the hearings, lawyers for a fintech startup said that the exchange regulator should have warned market participants that XRP is a security, which, however, did not.

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