Market Musings

Ripple Attacks SEC over Rumored Lawsuit, Warning: 'The Battle is Just Beginning'

Published on:
December 22, 2020

Ripple CEO Brad Garlinghouse is furious — and claims the SEC has 'voted to attack crypto.'

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Ripple’s CEO Brad Garlinghouse has claimed that the U.S. Securities and Exchange Commission is planning to sue the company over the alleged sale of unlicensed securities.

In a furious statement on Twitter, Garlinghouse said that the SEC has “voted to attack crypto” — and accused the commission’s chairman, Jay Clayton, of “trying to limit U.S. innovation in the crypto industry to BTC and ETH.”

Garlinghouse struck a defiant tone and vowed that Ripple will continue to use XRP “because it is the best digital asset for payments — speed, cost, scalability and energy efficiency.” He added:

“The SEC — out of step with other G20 countries and the rest of the U.S. govt — should not be able to cherry-pick what innovation looks like (especially when their decision directly benefits China.) Make no mistake, we are ready to fight and win—- this battle is just beginning.”

For its part, the SEC has been tight-lipped on whether a lawsuit is coming. There has been debate over whether XRP should be classified as a security (like stocks and shares) or as a currency.

Ethereum co-founder Vitalik Buterin said Ripple was “sinking to new levels of strangeness” by claiming that BTC and ETH were “Chinese-controlled virtual currencies.”

Several crypto projects have been successfully sued by the SEC over recent years after the tokens they sold during ICOs were deemed as securities.

One of the most notorious incidents centers on the Telegram Open Network. Last year, the SEC halted its $1.7 billion digital token offering. A long-running legal fight ensued, prompting the encrypted messaging app to abandon the project, pay a penalty, and return a substantial amount of funds to investors.  

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