- Ripple`s CEO states that the entity successfully operates in five jurisdictions as a currency.
- The ongoing SEC case against XRP weakens its market capitalization daily.
The United States Securities and Exchange Commission (SEC) and Ripple have been battling it out in court for more than a year. On December 22, 2020, the SEC filed a lawsuit against Ripple Labs and two of its executives. According to reports, they allegedly sold $1.3 billion in cryptocurrency XRP as security without registering it with the SEC. The entity and other parties immediately responded by stating that the SEC is biased in evaluating cryptocurrencies.
Ripple’s long road with SEC
In a recent interview, its CEO Brad Garlinghouse discussed the SEC’s view of cryptoasset XRP versus how financial regulators regard it in other major countries. According to Brad, the United States is the only country in the world that considers XRP security.
The SEC sued Ripple in December, alleging that XRP is a security because it was used to finance the company’s platform, which allows businesses to send money. Additionally, in the process, executives at the platform were rewarded with sales of XRP.
XRP has hit a market wall in recent weeks, as the impending legal battle has caused it to lose its third-place status. According to a report by Cryptopolitan, XRP was formerly the third-largest cryptocurrency by market capitalization. XRP is currently ranked sixth by market capitalization at $38 billion.
The future of the Ripple vs. SEC case is uncertain, with both sides unsure as to how it will turn out. Analisa Torres, a federal judge in New York, unsealed some evidence, sending the cryptocurrency industry into a tailspin. The SEC has continued to employ underhanded tactics to impede the XRP lawsuit’s progress.
The litigation is in the discovery stage, which means each side is gathering information to support their claims. It’s likely going to take years for the cryptocurrency community to get a final answer due to this case.
XRP acknowledged in five jurisdictions
According to the CEO of Ripple Brad Garlinghouse, despite Ripple’s poor luck in the American market, other nations have recognized XRP as a currency. The company is doing well in the United Kingdom, Switzerland, Japan, the UAE, and Singapore.
Brad states that “If we want the US to be a leader in this new growing critical innovative industry, as the internet 20 years ago, we need that regulatory clarity. And the SEC is really just coming out and saying ‘we are going to file lawsuits, enforcement, we’re not going to provide clear rules so that people know how to operate as other countries have done.”
Ripple teamed up with UK regulators to create its cross-border payment capabilities. The Santander United Kingdom, a part of the European banking giant, ranked as the eurozone’s most prominent by market value, became the continent’s first bank to utilize distributed financial technology. The institution offers international money transfers through its new mobile app, which Ripple powers.
Santander’s implementation demonstrated its dedication to Ripple’s financial technology. Santander also predicted that the company could save the banking industry $20 billion per year in costs associated with international money transfers. The collaboration also benefits regulatory compliance and offers consumers new, more enticing value propositions worldwide.
Ripple debuted in Singapore in early 2017. Towards the end of 2021, Ripple and Tranglo made a significant step forward in their collaboration. The entity is Asia’s leading cross-border payments service partner that scales the RippleNet footprint.
Moreover, in 2021, RippleNet partnered with SBI Remit Co., Ltd., the largest money transfer company in Japan and one of the Philippines’ major mobile wallet providers, Coins.ph. SBI Remit links with Coins.ph. and digital asset exchange platform SBI VC Trade on RippleNet due to the expanded partnership. The cooperation sped up and made cross-border payments more cost-effective between Japan and the Philippines.
The firm has a presence in the United Arab Emirates (UAE) and Switzerland. The number of traders that have benefited from its creation continues to rise daily.