SEC to sue Ripple for sale of unregistered securities: Ripple Calls Bitcoin ‘Chinese Controlled’
Follow us on Google news for more updates and News
Late Monday, Ripple released a statement that the Securities and Exchange Commission would file a lawsuit against the fintech for the sale of certain unregistered securities. This is regarded as a violation of the investor protection law. The SEC could claim that the sale of Ripple’s XRP to patrons was an infringement and the case would be filed in the federal civil court.
Ripple’s blockchain-based currency XRP is known to be a valid legal tender, but has now become controversial. It is the third largest cryptocurrency across the globe. The company claims that its competitors such as Ethereum and Bitcoin are being controlled by the Chinese.
The claim circles around the dilemma regarding the status of such currencies. Are these types of cryptocurrencies investment contracts or are they currencies? If former, then they need to be under the regulation of the federal government; if latter, then there may be several rules regarding the disclosures of financial matters to investors may not apply to them.
Brad Garlinghouse, CEO, tweeted that exiting the SEC chairman Jay Clayton was “picking winners and trying to limit US innovation in the crypto industry” with his support for Ethereum and Bitcoin.
“The SEC – out of step with other G20 countries & the rest of the US govt – should not be able to cherry-pick what innovation looks like (especially when their decision directly benefits China). Make no mistake, we are ready to fight and win – this battle is just beginning,” he added.
Shares of cryptocurrencies dipped on the news of the SEC’s lawsuit against Ripple.
PLEASE READ THE IMPORTANT DISCLOSURES BELOW.
This content is being provided to you for informational purposes only. The content has been prepared by third parties not affiliated with CWEB Inc, a business. This content and any information contained therein, does not constitute a recommendation by CWEB to buy, sell or hold any security, financial product or instrument referenced in the content. This information neither is, nor should be construed as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. CWEB Inc. does not offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy, and you shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Unless stated otherwise, the web content provided by the CWEB family of companies is for educational purposes only. The information and tools provided neither are, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. or its affiliates. Unless stated otherwise, no information presented constitutes a recommendation by CWEB Inc. or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy.