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While the Ripple lawsuit was the last blow struck against the crypto industry by Jay Clayton, Ripple noted that it is open to working with the agency’s new leadership whenever they are appointed.
Following the lawsuit filed by the United States Securities and Exchange Commission (SEC) against Ripple Labs Inc over allegations that it raised over $1.3 billion through the sale and distribution of the XRP cryptocurrency without properly registering it as a Security. According to a statement filed by Ripple on Tuesday, it noted that “the public and press have only heard the story from the SEC’s side,” adding that the company will “be filing our response in a few weeks to address these unproven allegations against Ripple.”
The SEC lawsuit since it was made public has sent a lot of shockwaves down into the XRP cryptocurrency which has continued to plunge in value as exchanges have started halting the trade of the asset with others delisting it in order not to get into the crosshairs as the lawsuit progresses beyond this infancy stage. While XRP, the digital asset most closely related with Ripple is seeing the toughest times owing to the lawsuit, Ripple has accused the SEC of hurting innocent investors or holders of the XRP coin.
“The SEC’s decision to file this action is not just about Ripple, it is an attack on the entire crypto industry here in the United States. We’ve always said that there is a dangerous lack of regulatory clarity for crypto in the U.S. – their lawsuit has already affected countless innocent XRP retail holders with no connection to Ripple. It has also needlessly muddied the waters for exchanges, market makers, and traders. The SEC has introduced more uncertainty into the market, actively harming the community they’re supposed to protect. It’s no surprise that some market participants are reacting conservatively as a result,” Ripple said in its issued statement.
A select session of the crypto community has backed Ripple in this lawsuit that may span for years, as many market participant believes the SEC’s allegations that XRP is a security is unfounded and misguided.
Ripple Says in Its Response It Will Continue Supporting Its Products Outside of the US
In the latest response filed to the SEC allegations and lawsuit, Ripple confirmed that the majority of its product users are based outside of the United States of America and that it will continue to support its products in those jurisdictions such as the UK, Japan, Switzerland, and Singapore where there is more clarity in the trading of XRP as a digital asset.
“In the meantime, Ripple will continue to operate and support all products and customers in the U.S. and globally. The majority of our customers aren’t in the US and overall XRP volume is largely traded outside of the U.S. There are clear rules of the road for using XRP in the UK, Japan, Switzerland, and Singapore, for example.”
While the Ripple lawsuit was the last blow struck against the crypto industry by former SEC Chairman Jay Clayton who resigned from the agency ahead of his tenure expiration due date, Ripple noted that it is open to working with the agency’s new leadership whenever they are appointed.