Ripple’s Team Prepares for Court Hearings Against SEC

Ripple CEO Brad Garlinghouse answered 5 key questions about the future of the company, as well as the preparation for court hearings against SEC.

January 08, 2020 | AtoZ Markets – At the end of December, the US Securities Commission (SEC) filed a lawsuit against Ripple “for the unauthorized sale of unregistered securities.”

Since then, representatives of Ripple have hardly commented on the situation, and only now co-founder and CEO of the company Brad Garlinghouse decided to answer the five most important questions for the community on his Twitter page.

Galinghouse addressed 5 key questions as Ripple prepares for court hearings against SEC

According to Garlinghouse, Ripple is seriously preparing for the upcoming litigation and intends to give a tough response to all the SEC allegations.

Why did Ripple disagree with SEC allegations?

In response to this question, Garlinghouse stressed that he considers all the SEC’s accusations unfounded. He also noted that the company does not abandon its attempts to resolve this issue peacefully with the new presidential administration. Recall that Gary Gensler, who previously expressed support for the cryptocurrency industry, became the new adviser to the US President.

Galinghouse could not answer this question unambiguously. He stressed that XRP token is in the top 5 cryptocurrencies in terms of capitalization and is distributed around the world.

“Delisting and halting are two different things, most of the exchanges stop trading. There are eight different government agencies in the US, each with their own (and sometimes opposing) views on cryptocurrency, so market participants face conflicting policies, and it is not surprising that some are acting conservatively, ”wrote Galinghouse.

Recall that several cryptocurrency exchanges at once announced the delisting of the XRP token after receiving information about the pending lawsuit. In particular, Binance, Coinbase refused to trade XRP. Bitcoin enthusiast Tony Weiss has already voiced his assumption that other major exchanges will remove the XRP token in the near future.

Why aren’t you responding to the SEC’s allegations?

The lack of public statements by Ripple’s management regarding the impending trial is making the crypto community nervous. However, Garlinghouse noted that silence usually occurs before the storm, and while nothing seems to be happening, an entire team of experts prepares to respond to the SEC.

Also, the Ripple startup has already enlisted the support of investors who filed a counter-lawsuit against the SEC “for wrongfully accusing the company”.

Do investors believe in Ripple?

Brad Garlinghouse is confident that investors believe in a bright future for Ripple and continue to buy the company’s tokens.

“We are disappointed that Tetragon (which owns 1.5% of Ripple) is trying to gain an unfair advantage by taking advantage of the current situation,” wrote the CEO of Ripple.

Earlier, AtoZ Markets reported that UK-based investment firm Tetragon Financial Group is suing Ripple over a lawsuit filed by the US Securities and Exchange Commission (SEC). According to the lawsuit, Tetragon intends to “exercise its contractual right to demand a buyback from Ripple” of its Series C preferred shares.

The investor also asks the court to block Ripple’s access to the use of any cash or other liquid assets until payment is made.

Have you paid clients to use XRP?

Garlinghouse did not hide the fact that it gave some users, mostly pioneers, certain privileges. Further, the CEO of Ripple emphasized the importance of the created payment system for the whole world.

“We’ve created a product that is FIRST of its kind – integrating new infrastructure is costly. ODL with XRP solves real-world cost, speed and settlement issues and has proven billions of dollars worth of it, ”Garlinghouse wrote.

Recall that the first court hearings are scheduled for February 22, 2021.

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