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Ripple denied that it is a security and claims it never conducted an ICO in a new response to an ongoing SEC lawsuit

In a response to the U.S. Securities and Exchange Commission to dismiss the related lawsuits, Ripple denies XRP as security and insists they have never conducted an ICO.

Ripple responds to an SEC complaint, saying that it never conducted an ICO

Although the SEC remains adamant with its lawsuit and brought XRP to the ring of the lawsuit, there are doubts, Ripple still holds its stance, denying all the allegations made in the lawsuit.

The main claim in the lawsuit is that Ripple and their native token XRP violated the Securities Act of 1933. Ripple argues that XRP serves the purpose of invalidating its classification as a security. The filing cites the token’s functionality as a medium of exchange and, therefore, the SEC has no authority to regulate it.

Ripple’s protections conclusively confirm that the issuance of XRP is not a sale of securities. It also notes that categorizing XRP as security will undermine its primary utility. It also means that thousands of exchanges, market makers, and other actors will have to comply with Complicated legal processes.

The SEC filed a lawsuit in December 2020 and claimed that Ripple illegally raised $ 1.3 billion through the offering. The lawsuit sent a shock wave in the world of crypto and caused the price of XRP to plummet. Since then, however, the token has dropped a bit in value.

CEO Brad Garlinghouse also filed a dismissal request in a lawsuit against him. In remarks similar to the latest filing, the document states that the SEC has allowed XRP to operate for eight years. So it questioned the sudden change.

Ripple also recently filed a lawsuit against YouTube over XRP gift scams involving impersonating corporate officials. Garlinghouse tweeted on March 10 about the development of the lawsuit. He claims a new solution will prevent, detect and eliminate these scams.

Retail investors have also filed a lawsuit against Ripple. This even included an investor who lost $ 48. Like the previous complaints, the lawsuit claims that Ripple has not registered XRP as a security.

All these developments have placed Ripple between a rock and a tough place. Meanwhile, many investors are holding their XRP, waiting for the final verdict. The consequences of defending failures may or may not have an impact around the world. It is said that 95% of Ripple’s customers are outside of the US jurisdiction.

You can see the XRP price here.

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