On Tuesday Ripple said it would oppose a lawsuit against it by the U.S. Securities and Exchange Commission. As most of you know Ripple is associated with cryptocurrency XRP. XRP is the third biggest cryptocurrency bu market value, and it was solely created and sold by Ripple. Financial regulators are still assessing how they should regulate the cryptocurrency industry and digital tokens like Bitcoin and its competitors. These rules will decide whether cryptocurrencies will go from niche to a mainstream asset.
Ripple Chief Executive Officer Brad Garlinghouse said, “We are right and will aggressively fight – and win – this battle in the courts to get clear rules of the road for the entire industry in the U.S.” “Instead of providing a clear regulatory framework for crypto in the U.S., Jay Clayton inexplicably decided to sue Ripple – leaving the actual legal work to the next Administration.” The Sec was not immediately contacted for a comment. The statement did not define the description of the suit against Ripple, but a company representative said the S.E.C. had informed Ripple it planned to file the suit this week.
“The SEC is fundamentally wrong as a matter of law and fact. XRP is a currency, and does not have to be registered as an investment contract,” the company said.