A lot of controversies is stirring since last year’s lawsuit of SEC against Ripple. The Securities and Exchange Commission is a body set up by the US federal government to control the securities industry issues. The regulatory body accused the Fintech company of launching unapproved tokens for sale back in 2013.
Many opinions surfaced concerning the arguments which both of them presented. SEC asserts that Ripple deprives XRP investors of specific rights based on their investment by not registering XRP tokens as securities. The body is responsible for securities approval or disapproval. Late last year, the watchdog went on a rampage with various suits, which the crypto community took with mixed feelings.
Grayscale disregards millions of XRP
The suit came with Ripple’s unfortunate incidences, mainly when it’s long-term partner, MoneyGram, dissociates itself from anything concerning the lawsuit. SEC mentioned MoneyGram specifically during the case, which necessitated the firm’s action of explaining the relationship between the two businesses.
Some news outlets also present a false move by GrayScale to dump millions of XRP because of the damaging claim the US body has against XRP. Late December, the official notice SEC gave concerning XRP not being approved as security shocked the crypto space. The allegation birthed the suit that caused the fintech company so much.
SEC pointed out the company’s top executives, Brad Garlinghouse and Chris Larsen, as the unlicensed sales head. The cryptocurrency lost almost 50% since the regulatory body gave its notice. Interestingly, since the allegation, partners and business associates constantly dissociate from the body, with Coinbase even preventing XRP from being traded on the exchange.
Despite the controversy surrounding the coin, the investment company clarified that it did not dump XRPs. The investment company with billions of investor’s funds under its control is the dominant player in the crypto space.
Grayscale clarifies XRP dumping rumor
Some days ago, a crypto enthusiast shared via Twitter that Grayscale followed suit without businesses that cut ties with Ripple by dumping millions of XRP tokens. Sources, however, found out that the news is false despite being carried by several publications.
Grayscale explained through one of its members that the various statements taken are inaccurate and false and clarified that the seemingly large decrease of XRP in its trust is due to the cryptocurrency’s falling prices.
The Ripple team released an official announcement a few days before the new year to prove its innocence concerning the suit. The company pointed out SEC’s bullying against businesses and asserted that it would stand up against it. It also pointed out the lack of a clear regulatory framework that causes havoc in the industry.
The fintech company opines that the suit is not just a war against Ripple. Still, an action against the whole digital assets industry assures that it supports businesses globally, especially since most XRP volumes come from outside America. The company lost its position as the fourth valuable digital asset to Litecoin since its impressive industry performance.
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