The US Securities and Exchange Commission (SEC) is about to file a lawsuit against Ripple for violating investor protection laws when selling XRP.
SEC Chairman Jay Clayton on the eve of his resignationdepartments decided to begin legal proceedings against the company and its managers. According to The Wall Street Journal, the pending lawsuit is based on the fact that Ripple has been illegally selling XRP since 2012. The regulator believes that the distributed digital assets are securities that should have been registered with the SEC.
In addition to the company itself, the Commission alsoplans to sue her generaldirector Brad Garlinghouse; and co-founder Chris Larsen. Representatives of Ripple call the filed suit unfounded and are ready to defend their point of view in the meeting room. The Treasury, Department of Justice and the US Financial Crimes Agency actually recognized XRP as a virtual currency back in 2015.
During 2018-2019, some investorshave already filed lawsuits against Ripple for issuing unregistered securities and false advertising. The company also recently announced plans to change jurisdiction due to many regulatory obstacles and pressure from American regulators.
This news had a noticeable negative impact on the market. During the day, the price of XRP fell by 17.7%.
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