Ripple has been at war with the securities and exchange commission since December 2020 when the SEC sued Ripple Labs for allegedly issuing and selling unlicensed securities.
Despite being sued by the SEC, Ripple Labs is not taking the suit sitting down and has denied any plans to settle out of court. According to a tweet from Charles Gasparino from the Fox Business Network, Ripple’s legal team has assured the news outlet that there are no plans to settle its lawsuit with the SEC. The team is “confident they can show @GaryGensler in pursuing the case is picking winners and losers in the #Crypto business to the detriment of innovation.”
Gasparino followed up his tweet with another from Gary Gensler’s camp. Gensler is the current chair of the SEC and has been spearheading the investigation into Ripple. According to the tweet, “people who know @GaryGensler say chances of him ceding power or cooperating to engage the #Crypto industry in a new regulatory regime are close to ZERO.” Gasparino added that the chairman will more than likely try to leverage the SEC’s power on this “UNLESS Congress or the courts step in.”
Gasparino went on to claim that people who are close to Ripple have said the case has hurt XPR’s domestic business in the United States. However, business is booming overseas which is “further proof the @SECGov crypto enforcement agenda is forcing innovation to occur outside the US.”
Ripple vs the SEC
The lawsuit in question, Ripple vs SEC, has been an ongoing fight from both sides since 2020. At the crux of the issue is the SEC accusing Ripple Labs of issuing and selling unlicensed securities to the public.
The suit not only names Ripple, but also Chris Larsen and Brad Garlinghouse as defendants. The pair is considered the ‘top brass’ at Ripple. According to a tweet from Garlinghouse in Jan 2021, the team tried unsuccessfully to settle with the SEC in the past. When asked directly why Ripple has yet to settle, Garlinghouse said “can’t get into specifics, but know we tried – and will continue to try w/ the new administration – to resolve this in a way so the XRP community can continue innovating, consumers are protected and orderly markets are preserved.”
Garlinghouse added that Ripple still has the backing of its shareholders.
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