Ripple Lawsuit Sparks Petition to White House for XRP’s Virtual Currency Status

XRP Advocates Petition the White House Amid SEC Lawsuit

As the SEC lawsuit against Ripple unfolds, XRP supporters are rallying behind the cryptocurrency, urging the White House to recognize XRP as a virtual currency. A petition launched on December 29, 2020, aims to garner 100,000 signatures by January 28, 2021, to force a review by White House officials.

The petition, created by an individual identified as J.W., has so far attracted 24,330 signatures, leaving 75,670 more needed to meet the target. XRP advocates are leveraging this initiative to spotlight the impact of the lawsuit on retail investors and to argue that XRP should not be classified as a security.

The Petition’s Key Arguments

The petition contends that the SEC’s allegations against Ripple have inflicted undue harm on innocent XRP holders, many of whom are retail investors with no direct ties to the company. Ripple has echoed similar sentiments, stating that the lawsuit disproportionately affects XRP users who are not involved in the company’s operations.

The petitioners assert:

1. XRP should be recognized as a virtual currency rather than a security.
2. The SEC’s lawsuit has caused financial losses and uncertainty for XRP investors.
3. Immediate intervention is needed to prevent further damage.

If the petition reaches the required number of signatures, it will compel the White House to review the case, potentially influencing the ongoing legal proceedings.

First Court Date Set for Ripple Lawsuit

The SEC vs. Ripple lawsuit is set to begin with a pre-trial conference on February 22, 2021, to be held via video call. Judge Analisa Torres of the U.S. District Court has instructed both parties to present their positions, including potential motions and settlement possibilities.

The SEC alleges that Ripple raised $1.3 billion through unregistered XRP sales. The lawsuit also names Ripple’s CEO, Brad Garlinghouse, and co-founder, Chris Larsen, who reportedly earned $600 million each from XRP transactions. Ripple has denied the allegations and expressed confidence in winning the case.

Ripple Lawsuit’s Impact on XRP

Since the SEC’s lawsuit was filed in late December, XRP has faced significant challenges:

1. Price Volatility: XRP’s price plummeted after the lawsuit, falling below $0.30 from its December high of $0.56.
2. Exchange Delistings: Several exchanges, including Coinbase, Bitstamp, and Bittrex, have suspended or delisted XRP trading for U.S. customers.
3. Investor Uncertainty: Many retail investors remain uncertain about the future of XRP, while others see the dip as an opportunity to buy.

Despite these setbacks, Ripple has maintained that XRP is a utility token, not a security, and intends to vigorously defend its position in court.

The Potential Ripple Effect of a Legal Win

Should Ripple succeed in court:

• XRP could recover its market value, benefiting long-term investors.
• The ruling could establish clearer boundaries for classifying digital assets, potentially protecting other cryptocurrencies from being labeled as securities.
• Ripple’s win may set a precedent for crypto regulation, fostering innovation while addressing regulatory concerns.

However, if Ripple loses, the case could signal heightened regulatory scrutiny across the crypto industry, potentially affecting other projects.

Conclusion

The XRP White House petition demonstrates the growing community support for Ripple amidst its legal battle with the SEC. While the outcome of the lawsuit remains uncertain, its implications extend beyond XRP, potentially influencing the broader cryptocurrency industry.

As the court date approaches, XRP advocates and the crypto community eagerly await developments that could shape the future of digital assets in the U.S.

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