March 4, 2024

Ripple CEO reveals new details on SEC lawsuit

Brad Garlinghouse said when the company will respond to accusations of selling unregistered valuablessecurities worth $ 1.3 billion, but dodged the question of whether the startup paid exchanges to list the XRP token.

Ripple is not going to give up in the comingweeks will provide a response to the "unsubstantiated" allegations of the US Securities and Exchange Commission (SEC), said the head of the company Brad Garlinghouse in his Twitter account. Earlier, the US authorities filed a lawsuit against a blockchain startup for the sale of unregistered securities for $ 1.3 billion under the guise of their own XRP tokens. Against this background, the cryptocurrency rate fell from $ 0.52 to $ 0.18, then recovered to $ 0.32.

Garlinghouse evasively answered the question, paidwhether the company is listed for XRP listing. He wrote that the token is in the top 3-5 digital assets in terms of liquidity, and 95% of trading takes place outside the United States. The startup has no control over which platforms XRP is added to as it is a decentralized system. Ryan Selkis, founder of the Messari analytical service, noticed that Garlinghouse did not answer the question, and asked it again.

Many exchanges after the SEC lawsuit began to conductXRP delisted or stopped trading. Garlinghouse stressed that most companies do not refuse to work with the token, but suspend it. Also, the head of the company said that in the United States there is "chaos" regarding the regulation of cryptocurrencies. According to him, 8 different departments have different, sometimes opposite views on the digital asset market, which leads to regulatory conflicts.

Garlinghouse says the company has triednegotiate with the SEC and resolve the conflict before the lawsuit. She will continue to work in this direction with the new leadership of the commission, but the process of resolving the conflict will be slow, the businessman concluded.

At the end of December it became known thatpreliminary hearings in the SEC case against Ripple will be held on February 22, 2021. They will be conducted online. By February 15, the parties can send proposals for the settlement of the claim.