The Securities and Exchange Commission filed a lawsuit against the Ripple company, charging Ripple for unlawful sales of XRP. SEC considers XRP as security, charging Garlinghouse and Larsen for selling XRP units in their possession and earning over 1 billion dollars this way. SEC also claims that Ripple Labs paid third parties to promote XRP tokens, that way earning a fortune. Ripple responded to the lawsuit that was announced in December 2020 by creating a 93-page filing as a response to SEC.
Ripple Labs Respond to SEC Lawsuit Claiming that XRP is not Security
The company behind the third-biggest token by market cap, XRP, responded to all allegations submitted by the Securities and Exchange Commission. In a 93-page filing, Ripple addresses all the lawsuit points made by the SEC, emphasizing that XRP is open-source and that ranking XRP ICO as a security sale would impair its main utility as a token. Ripple further stated in the mentioned filling that XRP is not a security or investment contract, which means, according to Ripple, that XRP couldn’t have been reported as security. It appears that Ripple is in majority sharing the view of the company on XRP, hoping their response would become a valid argument in the lawsuit. In the meantime, SEC is not giving up on the lawsuit, filling that XRP is indeed security and that Ripple organized an unlawful sale of XRP.
XRP Price Analysis After Ripple’s Response
XRP is seeing a major surge of over 35% in a single day, taking XRP to a new record price for the year, close to 0.50$ as the crypto is trading at the price of 0.47$. XRP is recording some major gains on the weekly chart as well with over 70% of rises recorded in the last seven days. Moreover, the 30-day chart is recording 117% in returns and biweekly is showing 70%. Is Ripple Labs manipulating the price of XRP to prove a point to SEC and the public? Or, is there something else hiding behind the latest price surge of XRP?
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