The cryptocurrency XRP is going through tough times for the SEC. The Securities and Exchange Commission sued Ripple for employing marketing strategies to increase the value of its assets. This legal battle has raged for the past few months, giving Ripple the advantage to win.
Due to XRP’s recent clashes with the U.S. Securities and Exchange Commission (SEC), XRP sent a letter requesting a settlement in North America. As part of the lawsuit, the Securities and Exchange Commission expects Ripple to ask foreign authorities to turn over the data in the facility. This problem exists because Ripple reportedly runs crypto exchanges outside of its headquarters in the country, which would be illegal.
XRP denies Securities and Exchange Commission charges
Ripple has responded to the lawsuit by saying it has not broken any rules in its transactions in the country. All of this information brought forward by the SEC the company said it did not have because no such action ever took place.
By making phantom accusations without proof of wrongdoing, the SEC cannot prove that Ripple used this strategy for marketing. The Securities and Exchange Commission is trying to prove that cryptocurrencies have used the monetary system to increase the value of assets. Although demand remains latent, the value of XRP has been steadily rising in recent hours, which may seem troublesome to the SEC.
When did the XRP trial start?
This legal issue between Ripple and the SEC came as a surprise to Chris Larsen, co-founder of the crypto-currency. The Securities and Exchange Commission notes that selling XRP to solo investors may be enough to violate securities laws. The lawsuit has been filed since December 2020, but the SEC likely does not have enough evidence to win the case.
The Securities and Exchange Commission is trying to support this lawsuit with evidence that XRP manipulated prices through planned advertising. Ripple is owned by Brad Garlinghouse and Chris Larsen, who plan to deliver XRP in bulk to currency systems. The Securities and Exchange Commission suspects that the company did not submit valid documents to approve these transactions outside the United States.
This regulatory commission seeks to support your right to search for XRP data through foreign platforms. Although the SEC searched the nooks and crannies of these platforms, it found no detailed information revealing Ripple’s true identity.
The Securities and Exchange Commission investigation had a bad start.
Although the SEC had every reason to sue Ripple, the lawsuit did not go smoothly. All the SEC has done is show impartial documents that show a dubious investigation.
With few signs of a trial, a judge may agree in the coming days to drop the charges against Ripple. This was one of the most questionable searches in 2021, although the end is near and Ripple could be catching up.
frequently asked questions
Can Ripples win a case before the Securities and Exchange Commission?
Another win-win situation.
What is the purpose of the SEC’s lawsuit against Ripple?