Ripple XRP trapped in US regulation legal tussle.
• The XRP CEO talks about the future of this cryptocurrency and if it can survive the regulators.
Ripple is recognized for the release of XRP, one of the pioneers of virtual currencies, and since last year, it has been caught in legal disputes with the United States Securities and Exchange Commission.
Brad Garlinghouse, the CEO of this company, has commented on his frustration over this dispute and the lack of clarity in US regulations. He also said that a significant part of the problem with these crypto regulations or measures in the United States is the lack of action by regulators.
Ripple’s legal problems in the United States
The SEC accused the XRP company, Garlinghouse, and co-founder Chris Larsen of making an illegal offering that raised about $1.3 million through the sales of XRP. On Wednesday morning, XRP was trading close to 8% amid a jump in crypto currencies. So far, it has risen over 300% but has fallen a long way from its ATH in the recent cryptocurrency crash.
Bitcoin is a cryptocurrency that had rebounded from its recent massive decline and, as of Wednesday, was hovering around $40,000.
Garlinghouse said there is a misunderstanding of how these technologies can be applied in the United States, and there is a lack of clarity in regulations. Garlinghouse also commented that other countries and the G20 markets had taken the time and dedication to provide certainty and clarity for investors.
The squabbles between regulators and the crypto industry are still unfolding: On Wednesday, the UK banned an ad advising individuals to buy Bitcoin, calling it reckless and irresponsible.
This week, the Wall Street Journal called for a ban on virtual currencies and mentioned problems with hackers using virtual currencies to receive payments through cyberattacks.
The liquidity service claims that Ripple uses the cryptocurrency XRP as a bridge between currencies. This allows banks and payment providers to process faster cross-border transactions.
Despite the volatility of virtual currencies this month, there are tokens like XRP that have reached new heights this year. Ripple owns most of the XRP tokens in circulation, and each month, they sell a small fraction of their holdings.
Garlinghouse has said that XRP is an open-source cryptocurrency that is very analogous to Bitcoin. He also added that the company would continue to leverage its XRP tokens and ledger for more efficient payments. The company threatened to move to other jurisdictions and geographical locations if XRP continues to be considered a security in the United States.