Ripple is stepping forward to respond to the petitions filed by the Securities and Exchange Commission (SEC) of the United States. The blockchain company has submitted its formal statement against the amended lawsuit filed by the SEC. They have claimed in their statement that they were not distributing or selling any XRP as a contract for investment. It also contended that the agency is misjudging and ignoring the tokens’ financial reality by which the transactions of over 1.4 billion had taken place.
Stu Alderoty, a member of Ripple general counsel, says that Ripple is going to get more information about the meetings of SEC with the other participants of the market to inform them about the security status of XRP.
According to the recently published reports, Ripple is refusing to take the responsibility of creating XRP tokens. On the other hand, according to the statement of SEC, the cryptographer-1 (David Schwartz), Ripple agent-1 (Arthur Britto), and Co-Founder (Jet McCelab) are responsible for creating XRP tokens of a hundred billion, at “very low cost”.
Ripple clearly disagrees with this allegation, despite Schwartz’s clear statement that XRP and Ripple’s creators were not much different. This tweet was posted by Schwartz a few months before the SEC lawsuit started.
Ripple has a high percentage of digital coins, which is quite similar to Exxon having oil. Ripple’s most recent point of view states that there are several companies and organizations which are deliberately taking part in the commodity markets while having a big amount of commodities like De Beere has diamonds, Bitman and many other Chinese miners have a high percentage of Bitcoin, Exxon owns large reserves of oil.
Ripple’s Response to SEC
Ripple has provided a summary of actions to its employees and has presented the company’s statement. It is highlighting that they don’t have any contract of Investments with XRP.
Following are the key highlights of Ripple’s statement.
· XRP, being a digital asset is outside the authority of SEC
· Ripple has never contracted with XRP holders for the sake of investment
· Being an XRP holder does not mean receiving a share of Ripple`s profit
· XRP is a massive market for eight years, and Ripple has less than 1% sales of XRP