There haven’t been any adverse impacts on the status of Tether in the Asian region as the tokenized crypto continues to flourish there while the scuffle was still going on in the US, says Ripple’s CEO, Brad Garlinghouse.
Ripple and its tokenized crypto as well as its senior officials were all indicted in a 1.3 Billion Dollar suit in the US. The suit was apparently filed by the US financial and securities watchdog, Securities & Exchange Commission (SEC). It was argued in the claim suit by SEC that the tokenized crypto, Tether, isn’t in fact a crypto. Instead, it was alleged by SEC that Tether fell into the category of “securities” which is different than any digitalized sort of currencies.
As a result of the lawsuit filing by the SEC, Tether’s value within the global market declined exorbitantly. In addition, many crypto exchanges who were offering Tether’s trade for several years opted to suspend trades. The reason being told was that they did not want to indulge in any scuffle with the US watchdog.
In its defense, Ripple argued that Tether by any stretch of imagination nor under any law, Tether could be called “securities”. However, the argument was not appreciated by US SEC at all. But in the Asian countries, neither they treated Tether as “securities” nor did anyone there suspending Tether’s trading. As a matter of fact, it has been announced by Ripple’s CEO, Brad Garlinghouse, that Tether’s business in Asian countries is on the horizon.
Since Ripple’s hard times in the US, its market in Asia is growing on a fast pace basis. It has been recorded recently by Ripple that Asia has become a vastly growing remittance mechanism.
For instance, a joint venture agreement has been entered into between Ripple and a business house in Japan. Through this joint venture arrangement with the collaboration of Ripple and SBI Holdings Japan a company called SBI Ripple will be inaugurated. This company will be used to send in and out remittances through the utilization of the technology exclusively owned by Ripple itself.
This Japanese company has also signed multiple agreements with global financial institutions with regard to its aim of inculcating SBI Ripple. The company is already aware that Ripple is in dispute with the US financial and securities regulator as well.
Since the Ripple has been launched, the issue was prevailing between SEC and Ripple. On several occasions, SEC pointed out its apprehension against Ripple but the issue wasn’t agitated very strongly. But during the times of Trump, the issue started to take a different turn and became quite serious. Under the garb of “safety of US investors’ money”, the Trump administration started to take action against Ripple.
It was recently also reported that the issue has come to an end between Ripple and SEC. There is a talk of arriving at a mutual understanding between the contesting parties. However, so far no official document or statement has been made public.