The Ripple team faced some challenges in the past months due to the SEC allegation, which continues to tear down XRP’s value. All the problems started when the Securities And Exchange Commission accused Ripple’s executives of selling unregistered tokens. The US regulatory body opines that XRP is a security and needs the appropriate filing with the commission.
The firm explained that the digital asset was not a security but a digital currency. The accusations might not end soon, with the firm demanding why the watchdog did not regard Ethereum as a security. The new response was a reply to the agency’s allegation, where the fintech firm asked numerous questions concerning other asset’s registrations.
Ripple calls SEC’s allegation unproven
The firm raised four claims, which supported XRP’s position as a non-security. The team also named its response ‘The Answer,’ which addresses other digital asset firms who did not register their tokens as a security. Based on the statement, it was clear that Ripple believed that the agency’s accusation was not proven before the body took the legal step.
The digital asset firm clarified that SEC’s allegations were not substantial to prove that XRPs were securities and mentioned that the company was out of step when it raised such claims. The company added that other regulators globally did not class it as a security, but more payment means.
One of the firm’s claims is that two other major regulatory bodies had established it as a virtual currency. The group mentioned FinCEN and US’s Department of Justice as the Federal agencies that established its position as a currency in 2015 and 2020, respectively.
Unfortunately, the last government tried to change this position, which Obama’s government had initially ruled as a non-security. The body also opined that SEC does not regulate with a clear framework, as it did not clarify why XRPs were called securities, while other cryptocurrencies were not.
The team praised some other countries for operating within a clear regulatory framework, such countries as the United Kingdom and others. The company once mentioned that it has a strong customer base from other countries, establishing its global outlook.
Some controversies on SEC’s lawsuit
The financial technology firm explained in its response that even with XRP having similar functions as Ethereum and Bitcoin, SEC still sees the company’s tokens as securities, unlike the top two cryptocurrencies. The team titled the part that raised SEC’s failure to fail similar allegations against the other digital assets as ‘SEC is picking winners and losers,’ which could mean that the watchdog was picking sides.
Now, the body asks the agency how Ethereum changed from security to a non-security since the latter did not sue the token’s founders for not registering the digital asset. The fintech company also wants SEC to present documents concerning digital assets’ determination as either securities or non-securities. The company also voiced displeasure concerning the suit and blamed the body for current depreciating XRP prices. The cryptocurrency company also faced delisting from major exchanges, further damaging its reputation.
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