Ripple has been in an intense legal battle against the United States Securities and Exchange Commission since December 2020, when the SEC sued Ripple Labs for allegedly issuing and selling unlicensed securities.
Despite being sued by the SEC, Ripple Labs is not taking the lawsuit idly and has denied any plans to settle out of court.
According to a tweet by Charles Gasparino from Fox Business Network, Ripple’s legal team has assured the news outlet that there are no plans to settle their lawsuit with the SEC. The team is:
“Sure they can show that @GaryGensler is pursuing the case and is picking winners and losers in the #Crypto business to the detriment of innovation.”
Gasparino followed his tweet with another from Gary Gensler’s field. Gensler is the current chairman of the SEC and has spearheaded the investigation into Ripple. According to him tweet:
“People who know @GaryGensler say that the chances of him giving up power or cooperating to involve the #Crypto industry in a new regulatory regime are close to ZERO.”
Gasparino added that the president is very likely to try to harness the power of the SEC:
“UNLESS Congress or the courts intervene.”
He also went on to claim that people close to Ripple have said that the case has hurt XPR’s internal business in the United States.
However, the business is booming abroad, which is:
“Further proof that @SECGov’s crypto enforcement agenda is forcing innovation to occur outside of the US.”
Ripple vs the SEC
The lawsuit in question, Ripple vs SEC, has been an ongoing fight on both sides since 2020, at which point the SEC accused Ripple Labs of issuing and selling unlicensed securities to the public.
The lawsuit not only names Ripple, but also Chris Larsen and Brad Garlinghouse as defendants. The pair is considered the “top brass” in Ripple.
According to a tweet from Garlinghouse in January 2021, the team tried unsuccessfully to settle with the SEC in the past. When asked directly why Ripple has yet to settle, Garlinghouse said:
“I can’t go into details, but we know that we try, and will continue to try with the new administration, to solve this in a way so that the XRP community can continue to innovate, consumers are protected and orderly markets are maintained.”
Garlinghouse added that Ripple still has the backing of its shareholders.
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