December 2020 started on the wrong path for Ripple as they faced a business threatening lawsuit. SEC made a report that announced its case against the Fintech company. The US regulatory body accused Ripple’s top executives of selling unregistered XRP tokens.
The body is responsible for the approval of securities registration, and it also acts as a watchdog against firms that break its regulations. SEC explained that the platform deprived investors of some of their rights, information, and legal protections attached to securities.
Late last year, Ripple followed up and released an announcement via its website to speak on the suit, and it condemned SEC’s unclear regulatory framework, which confuses parties involved. The Fintech opined that the regulatory body bullies crypto-related companies and promises to fight for others’ rights despite not getting much support from the American market.
Latest development concerning the suit
The firm’s CEO, Brad Garlinghouse, gave some latest developments on Ripple’s path to settle with the Security and Exchange Commission. Ripple faced some backlash from the space, and it’s crypto, XRP, is no longer traded on numerous exchanges as some of the effects of the allegations.
The digital asset also dropped in value rapidly, following the outflows from the company. Despite other cryptocurrencies gaining from the rallies, XRP is an exception linked to the legal battles the executives have faced since last year.
The executive explained through a tweet that the company made plans to settle amicably with the body, but unfortunately, it did not yield a positive return. He said that he could not give all details but assured the company’s space to arrive at a suitable conclusion.
Garlinghouse reported by the next tenure, and it would still try to settle with the new executives. Rumors concerning a separate trial are inevitable between the two founders since the CEO prefers a divided settlement. The tweet did not mention the extent to which the two negotiated their positions.
Settlements details revealed by the team
The Ripple noted that It would soon reveal new elements, but the settlement process will still take some time to understand its complex outlook. The Fintech team explained that removal from exchanges is beyond their control. The programmer picked out market policies as the primary reason why exchanges decided to go through that path.
Ripple’s legal team took steps to respond to the suit and revealed that it would send its reply in some weeks last year. The regulatory body made it known that XRPs are currencies, which aligns with Ripple’s clarification that XRPs are true cryptocurrency. By next month, the company will face legal proceedings as a result of the claim.
Other players in the space kept silent from the beginning of the suit until the present moment, making the Ripple team point out the silence as unhelpful. The cryptocurrency was previously the fourth-largest digital asset before Litecoin overtook. Experts predict a likely loss on XRP’s side due to SEC’s success in other suits.