Ripple’s CEO Says The Company Is getting Sued By The Securities And Exchange Commission

According to a new report, the Securities And Exchange Commission (SEC), a federal agency in the United States that regulates securities markets — plans to sue Ripple, one of the most famous crypto companies in the world.

Ripple announced the event this Monday, accusing the SEC of “attacking crypto” with Jay Clayton, SEC Chairman, trying to “limit innovation” on the crypto industry in the United States.

XRP As “Unlicensed Security”

Allegedly, the company would have sold XRP, Ripple’s official cryptocurrency, as unlicensed security instead of a digital asset in 2012, when it was launch. This means a violation of the SEC’s investor-protection laws.

Ripple’s CEO, Brad Garlinghouse told Fortune that the firm will file the case in 2021. Garlinghouse and Chris Larsen, a co-founder, will also act as defendants for this case.

Both Larsen and Garlinghouse have expressed their discontent with the U.S. jurisdiction on crypto-assets, and regulations under the Trump administration. On October 6, the company stated its intention to leave the U.S., seeking a favorable climate for cryptocurrencies.

Price Drop And “Constant Disputes”

The negative legal climate could turn against Ripple if the SEC moves forward with the lawsuit. According to Fortune, “years of debate” could follow on whether XRP was issued as a digital currency like Bitcoin or Ethereum, instead of a security, which should have been under SEC’s license:

“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.”

Following the announcement of the lawsuit, the XRP, which has a market cap of $23B, fell -13,50% at press time, according to Coinmarketcap.