On December 21, 2020, Ripple CEO Brad GARLINGHOUSE announced that the US Securities and Exchange Commission (SEC) plans to indict Ripple. The reason for the dispute is XRP classification. At the same time, Ripple has been battling accusations from XRP investors for a long time. The company is accused of deliberately providing false information about the dynamics of cryptocurrency prices. This trial has been ongoing since 2018.
Michael Kellogg, Ripple’s outside lawyer said:
«This complaint is wrong as a matter of law. Other major branches of the U.S. government, including the Justice Department and the Treasury Department’s FinCen, have already determined that XRP is a currency. Transactions in XRP thus fall outside the scope of the federal securities laws».
The company itself also said that they did not know about their guilt. The SEC obviously sees it differently and claims Ripple violated investor protection laws by selling XRP. Thus, not only the company itself will be accused, but also co-founders Chris Larsen and Brad Garlinghouse.
Amid a dispute with the regulator, XRP price fell. At the time of this writing, the price of the third largest cryptocurrency in the world has dropped more than 14% in the last 24 hours.