The United States Securities and Exchange Commission had recently filed a lawsuit against Ripple, circling around claims that they had held an ICO. Ripple has now responded, saying that they have never done this, and as such, has also denied any further allegations.
Ripple goes on the defensive as it fires back
A lot of doubts have been cast on XRP following the lawsuit filed against Ripple by the SEC. This is understandably troubling as XRP is the seventh biggest cryptocurrency in the market. To their credit, however, they have managed to hold their ground and are adamant that they see this lawsuit through to the end. As of the time of this writing, they have still denied all allegations made against them.
Regarding the lawsuit, the main complaint was made revolving around the idea that Ripple had been utilizing its XRP token in an attempt to violate the rules and regulations set according to the 1933 Securities Act. Ripple has responded to this by saying that XRP does not function as security, and so this complaint is null and void. Ripple has also stated that the token’s primary function is that of a medium of exchange, and so the SEC has no grounds to base their regulations on XRP.
Many could learn from Ripple
Ripple itself had recently filed a lawsuit against YouTube regarding their complicity in scams and fraudulent activities being conducted on their platform. It is, therefore, easy to see that Ripple will not back down when it comes to their product. However, they have to be careful because the nature of cryptocurrency and the business of digital trading are extremely volatile. If they do not play their cards right, many would-be hesitant to invest in them for the foreseeable future as they await the final verdict of the current situation.
Still, Ripple should be commended for their efforts and their continued determination to hold their ground. Nowadays, it is not uncommon for many firms and organizations alike to be subject to rules, regulations, and policies which may be detrimental to them in their business, so they can follow Ripple’s example should they find themselves in a similar situation in the future.