SEC is known for being very active and strict when it comes to adhering to the regulations and policies that it has put in place for Crypto-industry to follow. If any crypto-related firm is found breaching these policies in any way, then they are met with lawsuits and prosecutions by the SEC.
As per the recent reports, it has been revealed that SEC is now planning to sue one of the major cryptocurrencies ‘Ripple – XRP’. The SEC has taken this action following the recent information it was able to establish around Ripple’s soliciting to the U.S.-based users.
SEC has alleged Ripple – XRP for carrying out sales of their securities and using the XRP tokens to cover the entire process up. SEC has claimed that the securities that Ripple (XRP) sold to the users were neither registered nor licensed by the SEC.
The rumors were also confirmed by the CEO of Ripple ‘Brad Garlinghouse’ who tweeted about the recent proceedings made by SEC. He stated that the SEC has finally voted to take legal action against Ripple (XRP). While talking about the issue, he also took the opportunity to talk about the current Chairman of SEC ‘Jay Clayton’ Jay Clayton will soon be stepping down from his position as the Chairman of the Securities and Exchanges Commission.
Garlinghouse criticized how Clayton is ensuring that he decides the winners of the cryptocurrency industry before he leaves the SEC.
He stated that all these years, the top cryptocurrency assets Bitcoin (BTC) &Ethereum (ETH) have been stress-free. The main reason behind this is that both of the crypto-assets are decentralized in nature and therefore, safe from the SEC enforcement.
However, Ripple (XRP) has always received an enormous amount of resistance from the entire cryptocurrency community. It has been criticized by many investors and stakeholders for always being a centralized entity.
Just recently, it was revealed that Ripple has an enormous amount of XRP under its holdings. It was later revealed by Ripple itself that it has around 50 billion XRP under its holdings. Ripple claimed that it has received these XRP from the third-largest crypto-asset in the industry as a gift. It has been confirmed that the 50 billion XRP is half of the total amount of XRP that are currently rotating in the crypto-markets.
Although Ripple (XRP) has faced a lot of internal conflicts and problems through class-action lawsuits, it has still managed to be ranked as the third-largest cryptocurrency in the entire industry.
It is currently ranked as one of the richest companies in the fintech industry and currently has a reserve of over $25 billion.
The news of SEC planning to sue Ripple has started popping up right after Ripple’s CEO announced that they are planning to move their headquarters outside of America.