Following an amended complaint filed by the United States Securities and Exchange Commission in a lawsuit filed against Ripple Labs, we now have a response from the latter. They had stated that the SEC is abusing its power and is furthermore essentially choosing which cryptocurrency platforms are successful and which are destined to fail. There is some weightage to this argument, too, as certain policies and regulations by the SEC would usually benefit some and disadvantage others.
SEC is causing immense harm to XRP
Ripple Labs has recently commented that XRP was made with the intentions of it essentially being an improved version of Bitcoin. This is because of it having increased security due to its control over the XRPL being more distributed. To this end, they have since mentioned that the very idea of a complaint being filed by the SEC has resulted in numerous losses for XRP holders and is thus causing Ripple Labs to suffer as well. This was also due to the fact that the complaint had resulted in the value of the holdings that XRP consumers possessed to be reduced, in addition to contributions being made by many exchanges and participants and traders of the market having to cease their trading activities.
Ripple Labs also accused the SEC of intentionally mischaracterizing numerous items, chief among which is the claim regarding Ripple Labs’ XRP sales making up a significant portion of the respective XRP market.
Ripple denies charges, calls allegations overarching
Ultimately, Ripple Labs has completely denied the accusations levied against them. They thus look forward to having several meetings with the SEC in order to clear up the issues regarding the complaint, particularly the idea that XRP transactions would be conducted under federal security laws, which was a rule that Ripple Labs was previously unaware of, according to them.
Time will only tell what the future holds for Ripple Labs and XRP, but one cannot fail to consider the timing of the complaint, as it had just been issued one day following Ripple Labs executives filing their own motions with the intent to disregard the amended complaint.