Ripple’s XRP has lost more than $3.6 billion after the company revealed that it’s expecting a lawsuit from the US Securities and Exchange Commission (SEC). According to Ripple, the SEC may file a lawsuit based on an alleged sale of illegal securities.
Speaking to Fortune, Ripple CEO Brad Garlinghouse said that the authority would also name himself and the company’s co-founder Chris Larsen as defendants.
In reaction to the potential lawsuit, XRP lost billions in market value and is currently down 20.89% to $0.469145.
The CEO commented on the anticipated lawsuits. He said that the SEC’s claim is wrong based on law and fact. He added:
“XRP is a currency, and does not have to be registered as an investment contract.”
Speaking on the wrong timing of the lawsuit, he said further:
“In fact, the Justice Department and the Treasury’s FinCEN already determined that XRP is a virtual currency in 2015 and other G20 regulators have done the same. No other country has classified XRP as a security.”
As a CNBC report stated, Garlinghouse said that the SEC has already approved XRP as a currency. He also said that the agency should work on providing regulatory framework for crypto assets in the US. The CEO said that the SEC chairman Jay Clayton is passing the “actual legal work” to the incoming administration.”
Image Credits: Pixabay
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