XRP, the token issued by Ripple is down by more than 20% in the last 24 hour,s and this due to the news that SEC is suing the company and the CEO-s for selling 1.3 billion In unregistered securities.
Brad Garlinghouse himself, as well as Ripple co-founder Chris Larsen, will also be included as defendants. The CEO said he considers this to be:
“It’s an attack on the entire crypto industry and American innovation.”
It’s quite curious to say “the whole industry” while posting the tweet below, which shouts “injustice” over the SEC’s choice to only sue Ripple for XRP and not Bitcoin (BTC) and Ethereum (ETH):
“Today, the SEC voted to attack crypto. Chairman Jay Clayton – in his final act – is picking winners and trying to limit US innovation in the crypto industry to BTC and ETH.”
Today, the SEC voted to attack crypto. Chairman Jay Clayton – in his final act – is picking winners and trying to limit US innovation in the crypto industry to BTC and ETH. (1/3) https://t.co/r9bgT9Pcuu
— Brad Garlinghouse (@bgarlinghouse) December 22, 2020
A token that actually has all the features of a security
This is because, unlike XRP, Bitcoin and Ethereum projects have not been classified as securities by the SEC, because they are sufficiently decentralized and no person or company controls them. In any case not as directly as Ripple on XRP.
Likewise, the creation/issuance of BTC and ETH is done gradually, through the mining process . Conversely, the 100 billion units of XRP were created in one fell swoop in 2012 by Ripple (which sort of “ pre-mined ” all XRP on its behalf).
Brad Garlinghouse and Chris Larsen each also own a very large share of the XRP created. Just like the former founder Jed McCaleb, who is liquidating his XRP at full speed since he slammed the door of Ripple to pass on the Stellar project (XLM).
In any case, after reporting that, according to him, this complaint against Ripple “favored China” and its central bank digital currency – the DC / EP system – the CEO of Ripple ends by threatening:
“Make no mistake, we are ready to fight and win – this battle is just beginning.”
Even if the SEC will have taken the time to decide against Ripple, it, therefore, seems that it is done, even if at the time of this writing the US financial policeman has not yet formalized this announcement. A period of great uncertainty is now opening over the fate of the XRP token.