Ripple CEO brad Garlinghouse called the SEC’s lawsuit against his company an attack on the entire cryptocurrency industry.
The US securities and exchange Commission (SEC) accused Ripple of conducting an unregistered ICO for $1.3 billion. However, Garlinghouse does not agree with the charges, and assured shareholders that he will prove his case in court.
Ripple has spent 8 years working tirelessly to build an incredible company transforming global payments. Our mission doesn’t stop! Here’s what I sent to employees yesterday + our lawyers’ reaction to today’s SEC filing. https://t.co/wGHW4hCW2T
— Brad Garlinghouse (@bgarlinghouse) December 23, 2020
The head of Ripple said that the lawsuit initiated by the SEC can be regarded not only an attack on XRP, but also on the entire cryptocurrency industry. Garlinghouse is sure that this trial will have a snowball effect. In the near future, the same lawsuits will await for other issuers of well-known altcoins, including large exchanges.
The SEC document mentioned me, Chris Larsen and Ripple. In this case, XRP is representative of other cryptocurrencies, so I have bad news for all market makers. The SEC’s lawsuit against Ripple sets a tragic precedent for any firms working with digital assets, Garlinghouse said.
He added that by SEC actions, the Commission is organizing an all-out attack on the entire industry, despite its claims of readiness to develop innovations. The CEO of Ripple once again reiterated that XRP is not an investment scheme, since the holders of XRP are not connected by business relations with Ripple. In addition, the market value of XRP does not depend on Ripple’s activities, unlike securities. Garlinghouse believes that the SEC is further pushing Ripple to move to another jurisdiction, but the company still hopes to find a compromise with the regulator.
In the fall, Garlinghouse said that due to pressure from US regulators, Ripple may move from the US to the UK, since UK uses a clear classification of digital assets.