U.S. Securities And Exchange Commission May Sue Ripple Over XRP Sales

[ilovexrp]

San Francisco-based Ripple said it will defend itself against a lawsuit from the Securities and Exchange Commission (SEC) that claims the company violated investor-protection laws when it sold XRP, according to Washington Post on Dec 21.

If the SEC does sue Ripple, the action will follow years of debate between the company and the agency about whether XRP, a digital currency associated with Ripple, is a security, like a share of stock—which must be registered with the agency—or is instead a currency and thus beyond the SEC’s purview.  Ripple had a $10 billion valuation in its most recent funding round in 2019, and XRP is the third-largest cryptocurrency by market value, and currently has a market cap of $23 billion.

https://azcoinnews.com/u-s-securities-and-exchange-commission-may-sue-ripple-over-xrp-sales.html

[manifestxrpdestiny]

So... does this mean we are Ripple Labs stockholders 

I mean... XRP obviously isn’t a security, it’s just that Garlinghouse et. al. have been banking off it like it is. Sweet hustle really.

but still a hustle. with all their justifications for escrow, and fancy organization, they are still selling seashells for real money... the proceeds of which seem to fund their personal wealth, and not merely the company’s progress.

I doubt XRP will be declared a security now after the fact... can’t imagine the complexity of figuring out what each token would be a claim on (ostensibly Ripple Labs? Air?)... so XRP shouldn’t become a security, because it can’t be one... but Ripple issued XRP (and continues to) as if it is a security... so they will be forced to explain themselves...

interesting legal case for sure. If they lose, which is very likely given the government’s intolerance of threats to $ hegemony, I wonder what the consequences would be? Would they simply be fined and carry on business as usual? Will XRP be declared a security, forcing the exchanges to drop it (brutal)? Will they come to some compromise where Ripple forfeits its remaining holdings and air-drops it to each wallet?

maybe the US seizes the 50billion xrp in escrow and gains a majority stake in the next world reserve currency?  

Wish there was a tinfoil hat emoji.

 

 

 

 

 

 

Edited December 23, 2020 by manifestxrpdestiny