Ripple CEO Confident About Beating SEC Charges

Ripple Labs Inc, the company behind the XRP token, is making good progress in getting the charges levied against it by the SEC cleared, according to the company’s CEO.

What Happened: In an interview with CNBC, Ripple CEO Brad Garlinghouse stated that the questions being posed by the judge appointed for the case bode well for the San Francisco-based company, with a final ruling on the matter coming next year.

“We’re seeing pretty good progress despite a slow-moving judicial process,” Garlinghouse stated.  “Clearly we’re seeing good questions asked by the judge. And I think the judge realizes this is not just about Ripple, this will have broader implications.”

Why It Matters: Ripple, whose XRP token is the seventh biggest cryptocurrency in terms of market cap with a value of over $48.7 billion, found itself in the crosshairs of the SEC when the federal agency alleged that the company conducted an unregistered $1.3 billion offering of its token in the latter part of 2020.

Ripple’s defense hinges on the fact that XRP is classified as a currency rather than an asset class, meaning it does not need to be registered as an investment.

 

Despite the ongoing struggles, XRP’s value has risen 395% this year. The cryptocurrency traded 0.85% lower at $1.04 on Tuesday.

Source: Benzinga

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