In a resolute declaration, U.S.-based cryptocurrency giant Ripple has affirmed its unwavering commitment to combat the ongoing lawsuit brought forth by the U.S. Securities and Exchange Commission (SEC). Monica Long, Ripple’s president, vocalized the company’s stance, declaring, “We are planning to continue to fight the case all the way through,” during an interview with CNBC on Monday.
The legal tussle between Ripple and the SEC has endured for nearly three protracted years. In a momentous turn of events in 2020, the SEC accused Ripple and its co-founders of violating securities laws by vending $1.3 billion worth of their native cryptocurrency, XRP, without obtaining prior registration as a security.
Disputing these allegations vehemently, Ripple contended that XRP should be categorized as a commodity, not a security. In a pivotal ruling delivered in July by U.S. District Judge Analisa Torres, it was established that XRP could not definitively be classified as a security. “We also got clarity in that lawsuit. And the judge’s order, in that case, said very clearly XRP in and of itself is not a security, which kind of opens the doors to us to really expand our business — not just in the U.S. but even more globally,” asserted Long.
Ripple’s battle is not unique, as other cryptocurrency entities such as Binance and Coinbase find themselves entangled in similar lawsuits with the SEC. Leaders in the crypto realm have expressed frustration with the U.S. government’s regulatory approach, primarily due to the ambiguity it presents.
In response to the SEC’s stern actions, both Coinbase and Ripple, along with several other crypto firms, have contemplated relocating their operations beyond U.S. borders. The SEC, aiming to challenge Judge Torres’s groundbreaking ruling, successfully secured the right to file an appeal and formally presented its position on September 8th.
Ripple’s legal team, however, contended that the SEC’s quest for an appeal was predominantly rooted in its dissatisfaction with the ruling that negated XRP’s classification as a security for retail investor sales.
Long affirmed Ripple’s commitment to transparent operations and regulatory compliance, highlighting the company’s receipt of in-principle approval from the Monetary Authority of Singapore to provide regulated crypto services. She stated, “We’ve always been very engaged with regulators, and policymakers, and it’s just a part of our DNA. When we build [a] product, compliance is in the room. They have a seat at the table.”
In a recent strategic move, Ripple announced its acquisition of crypto infrastructure startup Fortress Trust, following its earlier acquisition of Swiss crypto custody services provider Metaco. This move underscores Ripple’s dedication to trust and regulatory adherence. Long summarized, “So the point on trust, we totally appreciate that to be a player in finance, and we’re now a regulated financial services provider with these licenses. You got to always operate above board.”
As the lawsuit rages on, Ripple’s determination to prevail sets a significant precedent for the cryptocurrency industry’s interactions with regulators. The outcome will undoubtedly impact the crypto landscape in the United States and beyond.
