Brad Garlinghouse, CEO of Ripple, responded to some concerns about the $1.3 billion lawsuit filed by the SEC through Twitter. However, people did not seem to buy it for their response. Since the news of the SEC lawsuit came out, more than 25 platforms including Coinbase, Bittrex, OKCoin, and Bitstamp have suspended trading or delisted XRP.
Ripple CEO Brad Garlinghouse revealed that the company tried to negotiate with the U.S. Securities and Exchange Commission (SEC) to resolve its unsuccessful litigation regarding its token sale, and criticized the “regulatory confusion” surrounding cryptocurrencies.
“I will not be accusing the SEC in an unconfirmed lawsuit on Twitter. As you can imagine, after the proceedings begin, there will be new considerations about what can/should be said publicly. However, I hope that I saw 5 key questions in response.
-Brad Garlinghouse (bgarlinghouse) January 7, 2021″
In a Twitter post about what he called “5 key issues”, the CEO strongly denied the “SEC’s unsubstantiated allegations” and claimed that his company was “on the right side of facts and history.” .
Garlinghouse stated that Ripple will continue its efforts to reach a settlement with the SEC:
“We have worked hard-and will continue to work hard to work with the new government-to solve this problem, so as to ensure that the XRP community can continue to innovate, consumers are protected, and an orderly market is maintained.”
The US Securities and Exchange Commission filed a $1.38 billion lawsuit against Ripple, Garlinghouse and co-founder Chris Larsen in December for selling XRP as unregistered securities. Since the news, more than 25 platforms, including Coinbase, Bittrex, OKCoin and Bitstamp, have suspended trading or delisted the token.
Garlinghouse did not directly talk about whether Ripple ever paid for the exchange to support XRP. However, he said that XRP is one of the most liquid digital assets in the world, and 95% of transactions are conducted outside the United States. He cannot answer when the token will be listed again. He pointed out that “Ripple has no control over where XRP is listed and who owns it.” He said that XRP is open source and decentralized.
However, Garlinghouse’s answer caused many readers to have more doubts:
“You didn’t actually answer whether the company paid for listing on any particular exchange. Did you?
-Ryan Selkis (twobitidiot) January 7, 2021″
Garlinghouse said the company was disappointed that one of its largest investors, Tetragon, who owns 1.5% of the company, filed a lawsuit. However, he said that other investors in the company still have confidence in Ripple.
Garlinghouse said that Ripple is currently drafting a response to the lawsuit and will respond within a few weeks, adding that Ripple’s general counsel Stuart Alderoty will provide more information.
The CEO of Ripple said that he is more optimistic about the opportunity for proper regulation in 2021, and he expects the Digital Commodity Exchange Act to be reintroduced.
“In the United States, we have gone from lack of regulatory clarity to regulatory chaos, which is why monitoring such bad public policies through law enforcement. Under the leadership of the new government, we look forward to #DCEA being reintroduced—common-sense legislation It will provide clarity for the entire industry.”
For the company behind the fourth-ranked cryptocurrency by market capitalization, this controversy is not new. In the past few years, Ripple has been criticized for its large-scale token liquidation, in addition to a class action lawsuit accusing Garlinghouse of misleading investors regarding the appeal of XRP.
Although it recovered 48% this week, according to CoinGecko’s data, the price of the token is still 44% lower than 30 days ago.
Before the US Securities and Exchange Commission filed a lawsuit against Ripple, the agency had successfully won the lawsuit against Telegram and Kik, two social media platforms, because these two platforms violated US securities laws in terms of ICOs.
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