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What Is The Matter?
As of 15th April, the price of the XRP token has surged by over 8.5%. However, at the time of writing, XRP was exchanging hands at $0.776236, down 0.09% in the last 24 hours.
Recently, the CEO of Ripple, the firm that has close ties with XRP and the XRP ledger, when attending the Paris Blockchain Week shared that the case that the company’s lawsuit with the Securities and Exchange Commission (SEC) is going “exceeding well.”
The U.S agency had alleged the top executives of Ripple, Brad Garlinghouse, the CEO, and Chris Larsen, the Executive chairman. The SEC claimed that the executives have done an illegal securities offering with the issue of XRP.
However, now the CEO seems quite optimistic about the lawsuit and said in an interview with CNBC that the lawsuit is going much better than he had expected, however “the wheels of justice move slowly,” he adds.
The comment was followed by a statement by a judge in which it was stated that the SEC has no right to alter emails that are kept for the release as part of the case, strengthening Ripple’s defense.
What Can Be The Consequences?
According to Ripple’s CEO, the case’s outcome would have a larger effect and is not only significant for Ripple but the entire crypto community.
Garglinghouse also points out the fact that in case the SEC wins the case then it will force most of the crypto exchanges in the U.S to register as broker-dealers with the SEC. In short, the exchanges will be considered securities.
Garlinghouse further explains that if XRP is identified as Ripple security, then it will be mandatory on its part to know each owner of XRP. “That’s an SEC requirement. You have to know all of your shareholders. It’s not possible,” the CEO adds.
Garlinghouse also revealed that the case has had a negative impact on Ripple, which substitutes SWIFT(The Society for Worldwide Interbank Financial Telecommunication), which has a major role in assisting banks to transfer money worldwide. He revealed that the firm has not sold any enterprise contracts to U.S. financial institutions in 2021.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
