May 15, 2021

SEC threatened XRP holders with legal action

The Securities and Exchange Commission has spoken out against allowing investors to join the recognition of XRP as a security.

Investors who try to intervene inthe proceedings of the US Securities and Exchange Commission (SEC) and the Ripple company force the regulator to initiate proceedings against them, the agency said in a statement to the court. The SEC recalled that it can decide against whom to open a case based on certain factors.

Previously, the regulator accused Ripple of sellingunregistered securities disguised as XRP tokens worth $ 1.3 billion. In court, investors obtained permission to join the case to defend their interests. However, the SEC does not agree with this decision.

"If investors are allowed to intervene, this will create a dangerous precedent for future enforcement actions of the SEC," - confident in the financial regulator.

At the end of April, Ripple CEO BradGarlinghouse criticized the US authorities for classifying XRP as a security. According to Garlinghouse, this is not the case in any other country in the world. The head of the blockchain project added that he was disappointed by the lack of clarity in the regulation of cryptocurrencies in the United States.