The ongoing lawsuit between the US Securities and Exchange Commission (SEC) and Ripple, which launched XRP, continues with the rejection of Ripple’s latest app.
Late last year, the SEC sued Ripple on the grounds that XRP is a “security” and that Ripple made more than $ 1.3 billion in revenue from “selling unregistered securities” through XRP sales.
In the lawsuit that has been going on for nearly 10 months, Ripple has asked the Commission to explain its policy regarding SEC employees who buy, sell, hold, or have taken such action in the past. By requiring SEC employees to know whether they are trading XRP, Bitcoin (BTC), or Ether (ETH), Ripple aimed to reveal whether the SEC gave the green light to trading these digital assets with this move.
However, this request was denied by the United States Southern District Court in New York. On the other hand, the court required that the Commission still present the documents in question to the court.
On September 24, Ripple CEO Brad Garlinghouse, who was interviewed on the Fox Business show The Claman Countdown, made statements about the case. Stating that the purpose of the SEC is to protect investors’ interests and maintain order in the marketplace, Garlinghouse noted that in the current situation, there are more than 10,000 XRP investors who have filed a class action lawsuit against the Commission.
“It has allowed XRP to be freely traded and traded in the US The number of people participating in the market has increased by the day. Traded for 8 years. He then filed a lawsuit and the price plummeted by 60 to 70 percent. If the goal is to restore order and protect investors, we don’t understand why the SEC is trying to stop it. “
Stating that the crypto sector is already regulated by the Commodity Futures Exchange Commission (CFTC), the Treasury Department, and other government agencies, Garlinghouse claimed that the SEC, which compared the market to the Wild West to the arguing that it was not regulated, he sued because he wanted more authority. SEC Chairman Gary Gensler, in a statement he made recently, compared the cryptocurrency market to the Wild West and said that there are more regulations on the way and that these regulations could harm many people.
Show host Liz Claman mentioned that XRP has a pre-mined supply of 100 billion, and Ripple periodically releases this supply. He said that therefore Ripple has the power to control the price of XRP and from that perspective, XRP looks like an asset, not a currency.
Brad Garlinghouse responded that the XRP blockchain was created long before the founding of a company, Ripple, and that Ripple, unlike Ethereum, did not hold an initial coin offering (ICO). Garlinghouse argued that saying that XRP is a collateral because the company owns a large amount is like saying that oil is a collateral from Exxon or that gold is collateral from major mining companies.
The lawsuit between Ripple and the SEC caused quite a stir in the cryptocurrency market when it was first heard. While the price of XRP lost more than 50 percent; Many cryptocurrency exchanges such as Kraken, Coinbase, and OKCoin have also removed XRP from the list.