Ripple CEO Brad Garlinghouse has said in a news documentary that XRP will continue trading if Ripple goes away.
Ripple has been in a legal battle with the SEC since December last year over the illegal sale of XRP. The CEO of the company took to his Twitter page to announce the lawsuit, saying it is limiting crypto innovation in the United States, pointing out that there was no wrongdoing by Ripple labs. He went on to say the lawsuit was merely an attack by the then Trump administration.
On the 22nd of December 2020, the SEC charged Ripple to the Federal District Court in Manhattan, alleging that Ripple, through an unregistered, ongoing digital asset securities offering, raised $1.3 billion.
However, the CEO has said that the SEC is the only agency in the world that thinks XRP is a security. Adding that other countries such as the UK, Japan, Singapore and Switzerland have clarity and certainty that Ripple is not a security.
He, therefore, reiterates that the lawsuit isn’t just bad for ripple, but bad for crypto in the US. According to Garling house, “it is driving that entrepreneurial activity outside the United States.”
Some people in the crypto community such as Chris Giancarlo, have taken it upon themselves to prove that XRP is not, in fact, a security.
Garlinghouse has also said that he would not base his new crypto company in the United States if he were to launch one.
XRP rises again
After the announcement of the lawsuit in December, the crypto asset suffered a terrible value decline very rapidly. Some exchanges stopped listing the currency, saying it was in order to keep customers safe.
Recently, Ripple has seen significant values spikes. Towards the end of February, the altcoin jumped by 25% in 30 minutes. Though XRP was not able to hold on to its gains, it remains steady at around $0.4.
Trading XRP is risky
Although the Ripple CEO believes that XRP will continue to be traded even after Ripple is gone, trading the crypto-asset could be risky.
Jesse Powell, CEO of US-based crypto exchange Kraken, says that trading XRP will be risky for exchanges. According to Powell, “There are huge asymmetrical risks for exchanges. We have to assume SEC’s case is in good faith. Judges tend to side with agencies. If XRP found to be a security, SEC would say that exchanges should have known. Safe harbour pending outcome would have been responsible if only purpose is to “test”