As the value of XRP plummeted after its delisting and suspension of trading on the exchange, Ripple Labs issued a statement on Tuesday, solemnly responding to the allegations of the US Securities and Exchange Commission (SEC) against the company.
This statement contains the following information:
“The public and the media only heard this story from the SEC, and we will submit a response within a few weeks to resolve these unconfirmed allegations against Ripple.”
The statement stated that the SEC is using Ripple to crack down on the entire cryptocurrency industry in the United States. Over the years, the company has been seeking regulatory clarity on digital assets, but to no avail.
Some observers believe that, as Ripple and the SEC have launched multi-year lawsuits, Coinbase’s decision to suspend XRP trading in January may ring the bell of XRP’s death. Coinbase announced on Monday its plan to suspend XRP trading-this is not surprising given the Coinbase exchange’s IPO desire.
Since the SEC filed a lawsuit against Ripple, accusing it of violating securities laws, XRP has been in a plummeting state. This prompted some exchanges to delist XRP to avoid regulatory scrutiny. Ripple stated that this lawsuit “has affected countless innocent XRP retail investors, who have nothing to do with Ripple.”
At the same time, Ripple will continue to operate and support all its products outside the United States, the statement explained:
“Most of our customers are not in the United States. The overall XRP transaction volume is mainly outside the United States. There are clear rules for using XRP in the United Kingdom, Japan, Switzerland, and Singapore.”
As Cointelegraph previously reported, Ripple CEO Brad Garlinghouse believes that no matter how the SEC chooses to classify XRP, his company will still be successful. This is because more than 90% of RippleNet users are abroad.
In the crypto industry, few people defend Ripple against the SEC’s allegations. The Coin Center, a think tank based in Washington, D.C., is an advocate of cryptocurrency, and it said it is not prepared to argue that XRP is not a security.
Ripple public relations representatives did not immediately respond to a request for comment.
