Regulation in the crypto market is not new as law enforcement agencies have been trying to reduce crime in the sector. Even at that, it has done little or nothing to dispel the growing crime rate in the digital asset sector. Ranging from fraud to illegalities, several regulators worldwide have carved out different laws that would suit them.
The CEO of Ripple, Brad Garlinghouse, has released an official statement that will not go down well with XRP holders. In the statement, Garlinghouse noted that he and the co-founder of the remittance company, Chris Larsen, are being targeted in a recent lawsuit by the Securities and Exchange Commission.
Garlinghouse brands development as an attack on the crypto sector
According to the statement that was put forward by the blockchain company, the United States Securities and Exchange Commission is targeting the firm because they claimed that they sold unlicensed securities.
In a series of reports going around the financial market, the Securities and Exchange Commission is moving swiftly and will slam the lawsuit on Ripple as soon as possible. Reacting to the news, Garlinghouse said that it was an intentional attack on the crypto market and the potential it promises. Garlinghouse said they are trying to squeeze out the opportunity for innovations in the Bitcoin and Ethereum world.
XRP is currently feeling the heat of the latest development as the digital asset has gone under, losing 17% in just under a day. Presently, the third cryptocurrency, according to market capitalization, is trading around $0.46. Garlinghouse has said that he is angry at the latest development and vows not to take a receding step to tackle the injustice. Furthermore, the CEO mentioned that the firm would fight the lawsuit to the last while also saying that the battle has just begun.
United States SEC now sees XRP as securities
Garlinghouse noted that the current chairman of the United States SEC, Jay Clayton, is trying to use his final acts to pick out his supposed winners and scapegoats in the crypto market. He also said that the crypto sector is not going anywhere, and Ripple will continue to use its native currency, XRP, to facilitate payments across the globe. XRP is a right preference for cross border payments because of its speed, scalability, costs, and security.
XRP is currently being listed on over 200 exchanges across the globe, and the CEO, Brad Garlinghouse, believes that it will continue to be so in the coming years. The Securities and Exchange Commission has always mentioned that Bitcoin and Ethereum can be classified as cryptocurrencies because they are decentralized. In contrast, the firm has maintained that it has not been able to rank XRP as cryptocurrency.
The latest development means that the SEC has finally decided to regard XRP as securities, hence the lawsuit. Famous personalities have started to lend their support to Ripple to fight the ruling with one of them, the founder of SBI Holdings, Yoshitaka Kitao, who mentioned that he has never seen XRP as securities.