- Ripple has vehemently denied allegations leveled against the firm by the SEC.
- XRP tipped to win drawn out legal tussle.
The cryptocurrency XRP has been going through difficult moments due to its legal battle with the SEC. The Securities Exchange Commission sued Ripple for implementing marketing strategies to increase the asset. This lawsuit has continued to rage for months, giving Ripple an advantage to take the victory.
In the most recent advances of XRP against the SEC, XRP sent a letter in which Ripple requested its regularization within North America. With this lawsuit, the Securities and Exchange Commission expects Ripple to request data transfers by foreign authorities. It is also believed that Ripple is involved with encrypted exchanges outside the headquarters in the country, and this is considered illegal.
XRP denies allegations made by SEC
Ripple has spoken out regarding the lawsuit and claims that it has not broken any rules regarding transactions in the country. Ripple claims not to possess all the information requested by the SC because the company has any such actions never occurred.
By giving phantom accusations without evidence of the crime, the Securities and Exchange Commission cannot prove that Ripple used this strategy for marketing. The SEC is trying to demonstrate that the cryptocurrency used the foreign exchange system to raise the asset’s value. Although the demand remains latent, the value of XRP has continued to rise recently, which may be troubling for the SEC camp.
When did the XRP lawsuit start?
The legal tussle between Ripple and SEC came as a surprise to Chris Larsen, co-founder of the cryptocurrency. The Securities and Exchange Commission noted that selling XRP to lone investors may be sufficient for a violation of the securities law. This lawsuit has been in place since December 2020, but there potentially is insufficient evidence for the SEC to win the case.
The SEC seeks to bolster the lawsuit by showing that XRP was price manipulated by using advertisements that were scheduled. Ripple belongs to Brad Garlinghouse and Chris Larsen, who had scheduled the delivery of XRP in large quantity to foreign exchange systems. The Securities and Exchange Commission suggests that the company has not provided valid documents to approve those transactions outside the American borders.
The regulatory commission has attempted to search for data against XRP using foreign platforms. Although the SEC has perused most of these platforms, it has not found detailed information that reveals the true identity of Ripple or if they have actually broken any law.
The SEC investigation had a bad start
Despite the SEC having every motivation to expose Ripple, the lawsuit started abysmally. The Securities and Exchanges Commission has only shown unbiased documents that reveal a questionable investigation of Ripple.
With little indication of the need for the lawsuit, the judge may agree to drop the charges against Ripple in the next few days. This investigation has been one of the most discussed topics in the crypto sphere in 2021. However, it seems to be coming to an end, with Ripple primed to take the victory.