Ripple declared its intention to take its battle with the U.S. Securities and Exchange Commission (SEC) to the end, according to CNBC's interview with the company's president, Monica Long. In addition to Ripple, other crypto entities such as Coinbase and Binance are being taken to court by the SEC for alleged violation of rules. Crypto executives have made their discontent with the U.S. and its attitude towards regulation known, citing a lack of clarity in particular.
Ripple, a cryptocurrency firm based in the United States, has declared that it intends to battle the legal case against it from the Securities and Exchange Commission "all the way through." On CNBC's Monday broadcast, Monica Long, Ripple's president, confirmed the company's position. This dispute, which has been ongoing for almost three years, involved the SEC's claim that Ripple and its co-founders had illegally traded $1.3 billion worth of XRP without registering it as a security. Ripple challenged the allegation, arguing that XRP is more like a commodity than a security. Last July, U.S. District Judge Analisa Torres ultimately determined that XRP did not qualify as a security. Long commented that the ruling "opened the doors" for Ripple to expand its operations, both in the U.S. and internationally.
Alongside Ripple, other crypto firms including Coinbase and Binance are currently in legal disputes with the SEC. Crypto company leaders have voiced their discontent with the U.S. government's regulatory rules, and some have even threatened to relocate away from the U.S. because of the SEC's hard line on enforcement. Judge Jed Rakoff of New York's Southern District recently supported Judge Torres, ruling that "offers and sales of XRP over crypto asset trading platforms could not lead investors to reasonably expect profits from the efforts of others." The SEC has as of yet not been given permission to submit an appeal on Judge Torres's ruling.
Ripple's legal representatives specified in a paperwork that the SEC's request for an appeal emanated mainly from their "displeasure" with the ruling of the judge that the XRP token was not categorized as a security for sales to non-professional purchasers. The President of Ripple told CNBC that the firm is keen to "comply with laws and regulations" and they had already obtained provisional clearance from the Monetary Authority of Singapore to deliver sanctioned crypto services in June.
Long noted that Ripple has always been devoted to working closely with regulators and policymakers, adding that compliance is integral to their product development. On Friday, Ripple announced its acquisition of Fortress Trust, a crypto-infrastructure startup, for an undisclosed amount; this follows its purchase of Switzerland-based Metaco, a crypto custody services firm, in May. Long explained that, as a regulated financial services provider, Ripple needs to remain above board, which is why trust is so important.
The story has been updated to accurately reflect that the SEC has requested permission to file an interlocutory appeal, but a decision is still pending. An additional paragraph was added to clarify Judge Rakoff’s ruling.
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