February 27, 2024

Ripple CEO reveals new details about SEC lawsuit

Ripple CEO reveals new details about SEC lawsuit

Ripple CEO Brad Garlinghouse has revealed several new details of the SEC's lawsuit against Ripple.

Garlinghousewrote that Ripple cannot "negotiate" withUS Securities and Exchange Commission. He “doesn't go into details,” but wants investors to “know that the company has tried and will continue to try” to settle the matter. Ripple's legal team will continue negotiations with the SEC under the Biden administration.

Ripple CEO reveals new details about SEC lawsuit

Garlinghouse also noted that most exchanges are temporarily suspending XRP trading rather than delisting the asset permanently. 

Ripple chief attorney Stuart Alderoti said the entire team is working on drafting a response for the SEC, which will be published "within a few weeks."

According to him, the SEC recognizes that Ripple's customersuse XRP as a means of conversion, which allows an asset to be classified as an "embodiment of a convertible virtual currency" and not a security. This position could help the firm defend itself against SEC allegations that the company conducted an unregistered sale of securities.

According to Garlinghouse, the cryptocurrency ecosystemThe US is in complete chaos. 8 different agencies are trying to regulate the digital asset market from different positions, leading to confusion and legal conflicts.

Ripple first announced the SEC charges on December 22, and the trial will begin on February 22.

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