Ripple (XRP) Cryptocurrency Is Sued by SEC

Ripple is a digital payment network created in order to establish an instant transfer of funds across the globe. Ripple facilitates the seamless transfer of money by connecting banks, corporates, payment providers through the RippleNet.

SEC (U.S. Securities and Exchange Commission) accused Ripple, which is the world's third biggest cryptocurrency for failing to register. According to the official announcement of SEC, Ripple is considered as "investment contract" and therefore a security under the federal securities laws.

After SEC filed a lawsuit against the cryptocurrency firm Ripple, their native XRP token's price plummeted approximately by 30%. If Ripple lose the case, the XRP tokens could face major issues, such as being delisted from exchanges.

However, according to Brad Garlinghouse who is the CEO of Ripple, "The SEC is completely wrong on the facts and law and we are confident we will ultimately prevail before a neutral fact-finder." Brad also stated that XRP is a currency and not a security.

What do you think, is Ripple going to win or lose? Comment below.

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Resources:

https://www.sec.gov/litigation/complaints/2020/comp-pr2020-338.pdf

https://ripple.com/insights/the-secs-attack-on-crypto-in-the-united-states/