2021 has started off well for most of the crypto ecosystem, except for Ripple. The company is on the verge of one of the riskiest lawsuits in the history of the industry, and the pessimism surrounding its XRP token has led it into a downward spiral that is causing significant losses to those who still are enrolled in the XRP Army.
Ripple has tried to tackle this situation in many possible ways, from investing in lobbies and external audits, to even contemplating a relocation. And even during the legal controversy, Ripple’s CEO has tried to settle with the SEC to avoid a lawsuit. However, his efforts have not been successful.
The Fight Has Just Begun
In a Twitter thread, Brad Garlinghouse said that the company has tried to resolve the problem out of court. Although their efforts have been in vain, Ripple will continue to try with Joe Biden’s administration.
Q: Why didn’t Ripple settle with the SEC?
Can’t get into specifics, but know we tried – and will continue to try w/ the new administration – to resolve this in a way so the XRP community can continue innovating, consumers are protected and orderly markets are preserved. 2/10
— Brad Garlinghouse (@bgarlinghouse) January 7, 2021
This was just one of a series of questions that Ripple’s CEO answered in an attempt to calm the FUD around this case. The SEC complaint was filed weeks before the end of Donald Trump’s term and was Jay Clayton’s last major move before leaving office.
Ripple seems to be pinning its hopes on some endorsement from a new, more crypto-friendly administration. It urged future legislators to have a little more common sense when addressing issues affecting the crypto industry.
We’ve moved from lack of regulatory clarity to regulatory chaos in the U.S. This is why regulation by enforcement is such bad public policy. With the new administration, we expect #DCEA to be reintroduced – common-sense legislation providing clarity to the entire industry. 5/10
— Brad Garlinghouse (@bgarlinghouse) January 7, 2021
This common sense is something that other industry players are also hoping for. VanEck, for example, has resubmitted its application for a Bitcoin ETF now that a new administration will be responsible for evaluating the case.
Ripple Addressed Other Hot Topics
Ripple’s CEO also touched on other hot topics, such as allegations that Ripple paid exchanges to list XRP. “Ripple has no control over where XRP is listed, who owns it, etc. It’s open-source and decentralized,” Garlinghouse said, without explicitly denying the rumors.
In these cases, wordplay is critical. A person without direct control over who lists a token can influence an exchange’s decision to list a token. But leaving this topic aside, Garlinghouse said that his company did pay its customers to start using its services —previously known as xRapid, xCurrent and xVia and now merged into ODL.
Garlinghouse said that in many cases, exchanges are taking preventative rather than definitive measures. He explained that there is a difference between delisting and halting, so the decision of some exchanges “comes as no surprise.”
Garlinghouse also talked about the controversy with Tetragon, a major Ripple investor. He criticized its decision to sue Ripple, making things even more difficult for the company:
Q: Do investors have faith in Ripple?
Yes, we have real shareholders. That is how you own Ripple equity – buying our stock, not buying XRP. We’re disappointed that Tetragon (who owns 1.5% of Ripple) is seeking to unfairly advantage itself through the SEC’s allegations. 7/10
— Brad Garlinghouse (@bgarlinghouse) January 7, 2021
The pre-trial conference on February . However, Ripple and the SEC are required to file a brief description of the case and their arguments by Feb. 15.
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