Although Ripple adopted by many banks and institutions, still facing regulatory issues in some cases. SEC (the United States Security and Exchange Commission) intended to sue Ripple. The reason behind is that Ripple is selling unlicensed securities in the form of XRP. In the latest news from cryptocurrency world, SEC is trying to sue Ripple with XRP.
CEO of Ripple took an unusual action
Brad Garlinghouse, Ripple CEO, took an unusual action and published a post on his twitter account. Apparently, he is trying to legislate the issue in the court of public opinion. Brad believes that SEC is trying to limit US innovation in the Crypto sector to BTC and ETH.
SEC is trying to sue Ripple with XRP; BTC and ETH could pass the regulations
Bitcoin and Ether both could escape from SEC enforcement due to their decentralized nature. On the other hand, XRP is under criticize for a long time by crypto community due to its highly centralized nature. Ripple holds around 50 billion XRP, which is an around half of the total supply. David Schwartz, the Ripple chief technical officer, believes that this amount is gifted by this company.
Despite lawsuit news, Ripple still maintaining its position
Although Ripple suffered from lawsuits and were facing with issues such as splitting its founders, it could still maintain its position as one the richest fin-tech companies. This firm worth around $25 billion and even the news of potential lawsuit could not affect its position. However, Ripple experienced 13.5% price decline due to lawsuit news.
SEC is trying to sue Ripple with XRP; Ripple is keep going on its visions and do not pay attention to recent issues
Chris Larsen, co-founder of Ripple, along with Garlinghouse hope to be the defendants in this current lawsuit. Garlinghouse mentioned that Ripple would keep thriving even with the current security designations. Recently, the company claimed that it is trying to open a new headquarter somewhere outside of the United States.