random
Hot News

Why is America fighting Ripple, dangerous developments in the case?

Home

 Why is America fighting Ripple, dangerous developments in the case?


Why Ripple specifically, no one has been able to answer this question yet, and is Ripple XRP a security as seen by the US Securities and Exchange Commission.

Whether or not XRP is just a cryptocurrency like dozens of digital currencies along the lines of Bitcoin and Ethereum.

Why is America fighting Ripple, dangerous developments in the case?

XRP now

In 2018, Ripple crossed its all-time high when it breached the $ 3.1 levels.

However, Ripple returned to decline like the rest of the cryptocurrency, reaching its bottom in March 2020, when it fell to $ 0.14.

With the revival of cryptocurrencies, Ripple rose again, jumping the highest levels of $ 0.71, approaching the levels of $ 0.8.

However, by the end of 2020, a fatal blow to the Ripple currency came by the Securities Commission, to fall in less than two weeks to the lowest levels of $ 0.18.

During those moments, from Tuesday's trading, Ripple is up about 12% to $ 0.47, while it is still recording a month-on-month decline of about 22%.

The market value of Ripple, which ranks sixth in cryptocurrencies, is about $ 22 billion.

the case


Since the end of December 2020, the XRP coin has lived through difficult times, some of the war waged by the US Securities Commission on that currency, and some see it as unjustified.

During that period, the Ripple currency lost a lot of its market value, as its losses reached about $ 15 billion, after exceeding its highest levels before the US securities warning last December.

In December 2020, the US Securities and Exchange Commission said that Ripple is an unrecognized stock, and that investors may lose billions of dollars by trading on it.

While the SEC sees Ripple as a security that investors and advocates see as a digital currency.

XRP coin holders have attempted to list themselves as third-party defendants in the US Securities and Exchange Commission's lawsuit against Ripple Labs.


6000 investors


A request to intervene was submitted by John Deaton of the law firm Deaton on March 14th on behalf of more than 6,000 XRP tokat holders. In Deaton's view, the interests of the coin holders were not adequately represented in the SEC's lawsuit against Ripple Labs and its executives.

The attorney and cryptocurrency enthusiast claimed that XRP token holders incurred losses of $ 15 billion in the days after the SEC announced its lawsuit against Ripple Labs.

 In the two weeks following the initiation of the lawsuit, the price of the XRP token fell 76% from $ 0.76 to $ 0.18.

The currency's drop in price is partly attributed to the decision by major cryptocurrency exchanges to remove XRP from their listings following the lawsuit.

Several major exchanges including Binance US, eToro, Coinbase, BETRIX and OKCoin have removed XRP from their respective platforms.

 Investment services such as Gray Skill have also liquidated their holdings from XRP, choosing to convert them into more Bitcoin (BTC), Bitcoin Cash (BCH) and Litecoin (LTC).

In January, Deaton, on behalf of XRP token holders, filed a petition asking the SEC to distinguish between XRP sales made by Ripple executives, and XRP purchases made by individual coin holders in secondary exchange markets.

The document submitted also requested that any funds received from the potential Ripple Settlement be transferred into a group trust fund for use by XRP token holders who incurred losses due to SEC procedures, but the request was rejected by the authority.


SEC contradiction

Former SEC chairperson Mary Jo White said the committee she once chaired was completely wrong in taking its case against Ripple.

White pointed to the fact that the SEC has not put in place a consistent framework for dealing with cryptocurrency issues.

As the SEC had previously announced that Ethereum is a cryptocurrency and not a guarantee, and many advocates for Ripple believe that the digital currency Ripple is like that of Ethereum.

Mary Jo White accuses the US Securities and Exchange Commission of failing to protect small investors in their work and actually hurting them.

 She says that as a result of this measure, she lost $ 15 billion of market capital, and said that if nothing else, classifying Ethereum as unsecured shows the inconsistent position of the US agency.

the beginning


On December 22, 2020, the SEC filed two lawsuits in Federal Court in the Southern District of New York against Ripple and two of its chief executives.

In one, the SEC claimed that Ripple sold $ 1.2 billion in unregistered securities.

On the other hand, the committee claims that Brad Garlinghouse, the current CEO of Ripple, and former CEO Chris Larsen sold $ 600 million in unregistered securities.

Ripple responded


Ripple has filed an official response to the lawsuit it faces from the US Securities and Exchange Commission (SEC), at the end of last January.

Ripple Inc. has requested the authority to issue documents explaining why Bitcoin and ETH / USD are not considered as securities.

Ripple officials argue that the regulator has previously failed to substantiate the claim that XRP is a security or investment contract under US federal law.

Ripple maintains that XRP is not a security and denies that it has sold billions of dollars in investment contracts.

Ripple said the US Securities and Exchange Commission should have made such allegations in 2015 when Ripple made a settlement with the Financial Crime Enforcement Network (FinCEN).

Ripple said the settlement with FinCEN describes XRP as a convertible digital currency.

Ripple's request from the SEC provides for clarification of the Bitcoin and Ethereum status in an attempt to portray the lawsuit as unfair and arbitrary.

google-playkhamsatmostaqltradent