Connect with us


Ripple Responds to SEC Lawsuit By Questioning Ethereum’s Legitimacy



Blockchain payments company Ripple has responded to the U.S. Securities and Exchange Commission’s (SEC) lawsuit over the illegal sale of XRP with an inquiry into Ethereum.

In a filing published Friday, Ripple challenged the SEC’s allegations claiming the San Francisco-based company had violated securities laws via the sale of $1.3 billion in XRP tokens.

The response reads,


The functionality and liquidity of XRP are wholly incompatible with securities regulation. To require XRP’s registration as a security is to impair its main utility.

The filing refuted each of the SEC’s claims in a detailed report, concluding that XRP did not constitute a security or investment contract. Ripple argued the SEC failed to properly acknowledge the utility of XRP, ignoring the token’s open-source protocol and price correlation with other top cryptoassets.

In addition to the filing, Ripple submitted a Freedom of Information Act (FOIA), requesting information pertaining to the nature of the Ethereum and whether it constituted a security under SEC law.

A representative for Ripple told CoinTelegraph,


The SEC has clearly picked two winners and ignored a growing and robust industry that is much larger than Bitcoin and Ether. In addition to discovery we will seek directly in the lawsuit, we filed a Freedom of Information Act (FOIA) request for more information about how the SEC determined the status of Ether as a non-security.

News Source