Ripple, the parent company of XRP crypto is defending itself against the accusations of raising illegal funds worth more than $1.4 billion by selling its native token
The U.S SEC has claimed that Christian Larsen and Bradley Garlinghouse made substantial profits during the funding of $1.4 billion by illegal means
If Ripple scores the win, it will a strong push for the token.
Last few bankruptcies, another war for the rights of cryptocurrencies is being fought against the U.S. Securities Exchange Commission (SEC). Ripple, the parent company of XRP crypto is defending itself against the accusations of raising illegal funds worth more than $1.4 billion by selling its native token.
As per the recent update, the conclusive decision on the case is around the corner and bound to affect the cryptocurrency market substantially. Both SEC and Ripple have rested their case in court and now waiting for the results. After sharing the final statements of Ripple on Twitter, Stuart Alderoty, General Counsel, Ripple, said, “After two long years, Ripple is proud of the defense we’ve mounted on behalf of the entire crypto industry. We have always played it straight with the Court. Can’t say the same for our adversary.”
The decision is going to impact the prices of the XRP token, however, the investors are backing XRP strongly with its valuation crossing $15 billion. Previously, we have also seen that even the slightest of positive cues in the court has pushed the XRP toward positive rallies. Thus, if Ripple scores the win, it will a strong push for the token.
The U.S SEC has claimed that Christian Larsen, Co-Founder of Ripple, and Bradley Garlinghouse, the current Ripple CEO made substantial profits during the funding of $1.4 billion by illegal means. However, Ripple has said that it had worked closely with SEC to ensure all the regulations are followed. Additionally, Ripple officials have also made it clear that XRP is not an investment vehicle and had never been promoted as Ripple’s equity to raise funds thus it does not qualify to become a security and come under the jurisdiction of the SEC.
Ripple has brought the case to the crypto community and declared it as SEC’s war against all cryptocurrencies. The founder of Ripple has stated the SEC is particularly picking up on Ripple and whitewashing Bitcoin and Ethereum while XRP is no different from any other blockchain token.
If SEC wins the case XRP would be treated as a security rather than a cryptocurrency and would be liable to follow the same legal precedent as that of any other public security. This can also make other similar cryptocurrencies fall in the same category and not qualify as a currency anymore.
Whatever would be the decision of the court, the crypto markets are surely going to be affected by it. Moreover, the market sentiments are already in a downtrend due to the recent crashes and if the decision of this case goes against Ripple, it might adversely affect the markets.
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