Ripple is commenting on the SEC’s argument that the company is illegally selling XRP as an unregistered security. The famous Blockchain company states that with the Ripple lawsuit, the US Securities and Exchange Commission (SEC) “wreaks havoc” in the crypto markets.
Ripple: The SEC created unnecessary distress in the market with the Ripple lawsuit
Kriptokoin.com As we have previously reported, the US Securities and Exchange Board (SEC) has officially sued Ripple in the past months. As part of this lawsuit, the SEC accuses Ripple and the company’s CEO, Brad Garlinghouse, and co-founder Chris Larsen of selling $1.3 billion in unregistered securities via XRP. Following this development, more than 33 companies and platforms have ended their support of XRP. Ripple addresses this issue in its latest report, saying:
SEC’s arguments have caused unnecessary concern amid exchanges, market makers and traders. It is disappointing and devastating that some market participants, especially in the United States, have reacted in this way. Ripple has identified 33 market participants who have declared some form of restrictive action against XRP. However, many companies, including Coinbase, have indicated that activity is paused, not just suspending their trading services.
Ripple: SEC responsible for “destroying XRP value”!
Ripple highlights that the SEC lawsuit affected 12% of the total volume of XRP. Additionally, the company says the SEC is responsible for “destroying the cost of XRP.” Ripple states the following in the report:
Ripple (XRP) has said that there has always been a dangerous lack of regulatory clarity in the United States. Market participants do not have clear rules that support crypto innovation and development. After the SEC filing, the crypto markets experienced a number of aftershocks and a negative impact on volumes. Ripple assumes that around $200 million in XRP volume per day was affected last quarter… US regulatory action wreaked havoc. It also caused US market participants to withdraw from the cryptocurrency market. During this period, close to 90% of XRP volumes remained intact, and many market participants moved forward with XRP-related businesses outside of the US.