Ripple Faces SEC Lawsuit, Prices Fall Significantly

As President Donald Trump's term comes to an end, SEC Chairman Jay Clayton will also leave the office at the end of 2020. But as Jay Clayton is about to leave office, it seems that he will "do it" to Ripple again. Ripple was informed on Monday that "it will soon become a defendant." Ripple CEO Brad Garlinghouse and co-founder Chris Larsen will also be named as defendants.

The dispute over this matter is ultimately about whether Ripple's digital asset XRP issued in 2012 is a security. If so, Ripple would have to register with the SEC and disclose to the public about the company s business logic, risks, and finances prior to the launch. (After receiving the registration, the SEC will review the materials and provide feedback to protect the interests of investors.)

XRP Current Quote, December 22, 2020 09: 45, Source: tokeninsight.com

In the past few years, the SEC has "failed" in prosecuting companies in the block chain / digital asset field (most of which are aimed at the public offering of these companies).

According to Fortune, Brad Garlinghouse said it was "shameful" that outgoing Jay Clayton decided to sue Ripple and leave the mess to the next chairman.

RiPPLE CEO Brad Garlinghouse tweets, December 22, 2020 09: 45, Source: Twitter.com

In an interview in November this year, Brad Garlinghouse has expressed his dissatisfaction with the regulatory environment in the United States, saying that such regulatory climate cannot provide "level playing field" for the digital asset industry. Now Ripple is like "still resisting tenaciously with one hand tied."

In October, co-founder Chris Larsen also warned that Ripple might leave the United States to seek a more relaxed regulatory environment.

The price of XRP has dropped significantly, Source: tokeninsight.com