The US Securities and Exchange Commission (SEC) lawsuit against Ripple could turn into troubles for all crypto industry said the CEO of the California-based blockchain company Brad Garlinghouse.
Ripple has spent 8 years working tirelessly to build an incredible company transforming global payments. Our mission doesn’t stop! Here’s what I sent to employees yesterday + our lawyers’ reaction to today’s SEC filing. https://t.co/wGHW4hCW2T
— Brad Garlinghouse (@bgarlinghouse) December 23, 2020
In a message to Ripple employees, Garlinghouse calls the actions of the American regulator “a terrible precedent for the entire industry and any company working with digital assets.”
Ripple has always worked in partnership with regulators and stressed that there is no clear regulatory environment for the cryptocurrency industry in the US, he said. Along with the excessive attention of the American authorities, this was the reason why the co-founder of the organization Christian Larsen allowed the Ripple office to move to a more friendly jurisdiction.
Garlinghouse noted that the XRP token is not an “investment contract” since its holders are not associated with the organization itself. The market value of the coin does not correlate with the actions of Ripple, unlike securities.
“Our company has shareholders; if you want to invest in Ripple, you are not buying XRP, but Ripple shares,” added the CEO.
He promised to defend this position in court and defend the company.
The institutional digital asset platform OSL has previously suspended XRP transactions until further notice, citing SEC action.
Please note: In light of US Securities & Exchange Commission’s enforcement action against Ripple Labs & 2 of its executives, we have suspended all #XRP payment in and trading services on the OSL platform, effective immediately and until further notice.https://t.co/EXJJEHMawn
— OSL (@osldotcom) December 23, 2020