Ripple CEO Brad Garlinghouse has once again expressed dissatisfaction with the SEC lawsuit and the state of the US regulatory framework for cryptocurrencies.
April 2, 2021 | AtoZ Markets – Commenting on the company’s problems with the regulator in an interview with Bloomberg Technology, he also mentioned that the Commission will face a change of leadership.
Garlinghouse is confident that the lawsuit against Ripple is an attack on the entire cryptocurrency industry.
Recall that the company’s problems began in December 2020, when the Securities and Exchange Commission (SEC) sued it for the illegal sale of securities. This event gave rise to disputes about what XRP, and whether it is possible to classify this token as a currency or a means of payment.
XRP price affected by lawsuit
The SEC claims XRP falls within the definition of a security, but the California startup strongly disagrees. The company emphasizes that XRP is a cryptocurrency, the same as Bitcoin or Ethereum.
The conflict has only escalated over the past few months, with Brad Garlinghouse arguing that Ripple will be desperate to fight the allegations. He also noted that the SEC is the only regulator in developed countries that classifies XRP as security.
Meanwhile, the lawsuit has already hurt the project’s reputation. Since the beginning of the conflict, XRP has fallen in price by more than 70%. Many exchanges have even dropped XRP from their listing to avoid SEC sanctions. Over the past month, the cryptocurrency has stopped falling and partially won back losses. XRP is trading at $0.56 at the time of writing.
There is hope for Ripple
The commission filed a lawsuit against Ripple in December 2020, just days before Jay Clayton’s departure as chairman. This raised suspicion among many that the lawsuit was a personal attack on company founders Brad Garlinghouse and Chris Larsen.
“If you remember, J. Clayton, Chairman of the Securities and Exchange Commission, the day before he left office, filed a lawsuit against Ripple and against me personally. But these actions make no sense, given that XRP has been on the market for eight years. I think it was a big mistake to do this the day before the resignation.”
It seems that with the arrival of Gary Gensler, there is hope for Ripple. Given his comments, Gensler is believed to be loyal to cryptocurrencies. When asked about the possibility of resolving the conflict with the new leadership, Garlinghouse said he was optimistic.
“I hope that Gary Gensler and the new chairman will be approved in a couple of weeks. This is a good opportunity to talk to the new leadership.”
Think we missed something? Let us know in the comment section below.