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The price of XRP is down 16% after Ripple CEO Brad Garlinghouse said the company will be sued by the Securities and Exchange Commission (SEC).
The payments startup, which owns more than half of the total XRP supply, is preparing to combat allegations that the company illegally sold the digital asset as an unregistered security, the Wall Street Journal reports.
Garlinghouse calls The move was an attack on the entire industry.
Today, the SEC voted in favor of attacking cryptocurrencies. President Jay Clayton, in his final act, is picking winners and trying to limit American innovation in the crypto industry to BTC and ETH.
We know that cryptography and blockchain technologies are going nowhere. Ripple has used and will continue to use XRP because it is the best digital asset for payments: speed, cost, scalability, and energy efficiency. It is traded on more than 200 exchanges globally and will continue to prosper.
The SEC, which is not in tune with other G20 countries and the rest of the US government, should not be able to choose how innovation looks (especially when its decision directly benefits China). Make no mistake, we are ready to fight and win, this battle is just beginning. “
Ripple placed the majority of its XRP holdings in escrow in 2017 and has routinely sold parts of its holdings to institutional investors and on crypto exchanges.
It also uses the digital asset to power one of its remittance platforms, called Liquidity on Demand.
Ripple, which is also facing a class action lawsuit over the status of XRP, has long argued that the cryptocurrency is not a security.
The company says that XRP exists independently of Ripple and cannot be a security because investors in the digital asset are not shareholders of Ripple in any way.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investment in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
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