Ripple, a cryptocurrency business established in the United States, has stated that it intends to fight the continuing legal battle with the US Securities and Exchange Commission “all the way through.”
The matter will be fought all the way through, according to Monica Long, president of Ripple, who spoke to CNBC on Monday.
Nearly three years have passed since Ripple and the SEC began their legal battle.
The sale of $1.3 billion of XRP, Ripple’s native cryptocurrency, without first registering it as a security was alleged to have violated securities regulations by the SEC in 2020, implicating Ripple and its co-founders.
The assertions were refuted by Ripple, which insisted that XRP cannot be classified as a security and is more akin to a commodity. In July, U.S. District Judge Analisa Torres issued a significant decision that established the token wasn’t a necessary security.
“In that action, we also obtained clarity. And the judge’s ruling in that case made it very clear that XRP alone is not a security, which in a way gives us greater room to grow our company not just domestically but also internationally, according to Long.
It’s not only Ripple. Several other cryptocurrency businesses are now involved in legal disputes with the SEC, including Binance and Coinbase.
The U.S. government’s approach to regulating crypto has drawn criticism from crypto leaders, notably for its lack of clarity.
In response to the SEC’s crackdown, Coinbase, Ripple, and other crypto companies have vowed to leave the country.
As per the SEC’s statement, offers and sales of XRP through crypto asset trading platforms described as “programmatic” would not create a reasonable expectation among investors for profits resulting from the efforts of others. The SEC has requested permission to file a motion for an appeal to challenge Judge Torres’ landmark ruling.
Judge Torres has been asked for permission by the SEC to file an interlocutory appeal, but the decision has not yet been made.
The legal team for Ripple claimed in a document that the SEC’s request for an appeal was primarily motivated by “dissatisfaction” with the judge’s decision that the XRP token did not meet the criteria for being sold as a security to retail investors.
The president of Ripple said that the business aims to “operate above board” and adhere to regulations. The Monetary Authority of Singapore gave Ripple in-principle clearance in June to provide regulated cryptocurrency services.
We’ve always had a strong relationship with regulators and policymakers; it’s in our DNA. Compliance is a topic we discuss when developing a product. They are seated at the table, Long remarked.
Ripple announced on Friday that it will buy Fortress Trust, a business providing crypto infrastructure, for an undisclosed sum. This comes after its May acquisition of Swiss cryptocurrency custody services provider Metaco.
With these licences, we are now a regulated financial services provider; thus, with regard to the trust issue, Long stated, “We totally appreciate being a player in finance.” You must always conduct yourself ethically.