Ripple could ditch XRP and replace it with an alternative if it loses the lawsuit with the US SEC, according to CEO Brad Garlinghouse.
April 2, 2021 | AtoZ Markets – Ripple is considering the XRP phase-out scenario. This opinion was expressed by the head of the company, Brad Garlinghouse in a CNN interview with Julia Chatterley.
SEC Lawsuit: "@Ripple and I have been more transparent than anyone else in the #crypto industry about our activity."— Julia Chatterley (@jchatterleyCNN) April 1, 2021
CEO @bgarlinghouse says the #SEC is wrong on the facts & on the law.
"I find a certain irony with bringing a lawsuit against us personally." / PART 1 pic.twitter.com/d0dN8IdqQA
Despite the lawsuit with the US Securities and Exchange Commission (SEC), the company is making progress, Garlinghouse said.
“The good news for Ripple is that we continue to do partnerships. We have signed contracts with 20 financial institutions around the world since the SEC filed a lawsuit, ”Garlinghouse said.
At the same time, he allowed the company to refuse XRP, although he believes that the exchange regulator is essentially engaged in a witch hunt. Thus, Garlinghouse commented on the absence of SEC claims against Bitcoin and Ether.
Ripple price almost did not react to the statement
This is the first time the San Francisco-based fintech company has allowed XRP to be dropped. However, Garlinghouse's statements do not seem to have any effect on the price of the token.
The price of the token in the XRP/USD pair at the time of writing has increased by 2.05% to $0.58. Market capitalization jumped $614.8 million.
Earlier in an interview with Bloomberg, the head of Ripple said he hopes to settle the conflict with the new SEC administration.
“I hope that Gary Gensler, probably the new SEC chairman, will be confirmed in a couple of weeks. This is a good opportunity to speak with the new management,” Garlinghouse said.
As a reminder, the exchange regulator filed a lawsuit against Ripple at the end of 2020. The commission says XRP falls within the definition of a security, but the California-based startup strongly disagrees. Ripple emphasizes that XRP is a cryptocurrency, just like Bitcoin or Ether.
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