The cryptocurrency XRP has been going through difficult moments by the SEC. The Securities Exchange Commission sued Ripple for implementing marketing strategies to increase the asset. This lawsuit has been raging in recent months, giving Ripple an advantage to take the victory.
In the most recent advances of XRP against the SEC, XRP sent a letter in which they asks for its regularization within North America. With this lawsuit, the Securities and Exchange Commission expects Ripple to request foreign authorities data transfers in the asset. This problem persists because Ripple supposedly makes encrypted exchanges outside the headquarters in the country, which would be illegal.
XRP denials regarding SEC lawsuit
Ripple has spoken out regarding the lawsuit and claims that it has not been breaking the rules with transactions in the country. All this information that the SEC emphasizes, the company has indicated that it does not have it because such action never occurred.
By giving phantom accusations without evidence of the crime, the Securities and Exchange Commission cannot prove that Ripple used this strategy for Marketing. The SEC is trying to demonstrate that the cryptocurrency used the foreign exchange system to raise the asset’s value. Although the demand remains latent, the value of XRP has not stopped rising in recent hours, which may seem annoying to the SEC.
When did XRP lawsuit start?
This legal problem between Ripple and SEC came as a surprise to Chris Larsen, co-founder of the cryptocurrency. The Securities and Exchange Commission notes that selling XRP to lone investors may be sufficient for a violation of securities law. This lawsuit has been in place since December 2020, but there is likely insufficient evidence for the SEC to win the case.
The SEC seeks to bolster the lawsuit by showing that XRP was price manipulated by using advertisements that were scheduled. Ripple belongs to Brad Garlinghouse and Chris Larsen, who has scheduled the delivery of XRP in large quantity to foreign exchange systems. The Securities and Exchange Commission suggests that the company has not provided valid documents to approve those transactions outside the American borders.
This regulatory commission tries to uphold your right to search data against XRP using foreign platforms. Although the SEC searches every corner of these platforms, it has not found detailed information that reveals the true identity of Ripple.
SEC investigation got off to a bad start
Despite the SEC having every motivation to expose Ripple, the lawsuit did not start in the best way. All the Securities and Exchange Commission has done is show unbiased documents that reveal a questionable investigation.
With little indication of the lawsuit, the judge may agree to drop the charges against Ripple in the next few days. This investigation has been one of the most questioned in 2021, although it is about to cease, and Ripple could take the victory.