Ripple denies creating XRP in its response to the SEC’s first complaint, the lawsuit has no effect on their business

As AZCoin News reported, Ripple has filed a response on the case to the SEC, claiming that they did not sell or distribute XRP as an investment contract. This means Ripple is ramping up the fight against the U.S. Securities and Exchange Commission.

Ripple denies creating XRP in its response to the SEC’s first amendment complaint

According to Ripple, SEC ignores and mischaracterizes the economic realities of the token that has recorded over 1.4 billion transactions.

Ripple’s general counsel, Stu Alderoty said:

“Ripple is also looking forward to finding out more about the SEC’s meetings with market participants and its alleged failure to warn them about XRP’s security status.”

The SEC’s lawsuit claims that the Co-Founder (Jed McCaleb), Ripple Agent-1 (Arthur Britto), and Cryptographer-1 (David Schwartz) are responsible for generating 100 billion XRP at a low cost.

Ripple denied this allegation in his response although Schwartz clearly mentioned that the XRP creators are quite similar to the ones who created Ripple in his tweet posted just months before the SEC lawsuit:

“The people who created XRP are pretty much the same as the people who created Ripple and they created Ripple originally to, among other things, distribute XRP.”

Ripple holds a similar percentage of cryptocurrency as Exxon holds oil, according to the company’s most recent filing:

“The people who created XRP are pretty much the same as the people who created Ripple and they created Ripple originally to, among other things, distribute XRP.”

The company claims that it does not have complete information about the sales of its executives, who recently filed two separate letters to dismiss the lawsuit:

“Ripple lacks sufficient information to either admit or deny the allegations in paragraph 186 as to Mr. Garlinghouse’s sales of XRP, and they are therefore denied.”

However, it admits that Ripple employees have been observing the token’s transaction price and volume. To the extent any response is needed, Ripple denies the allegations, except admitting that Ripple employees have sometimes observed XRP’s transaction price and volume.

Blockchain payments firm has not experienced any fallout in its Asia Pacific business

Even though we see Ripple currently facing a lawsuit with the SEC, they have not encountered any business failures in the Asia Pacific.

Brad Garlinghouse, CEO of Ripple, shared:

“It has hindered activity in the United States, but it has not really impacted what’s going on for us in the Asia Pacific. We have been able to continue to grow the business in Asia and Japan because we’ve had regulatory clarity in those markets.”

He stated:

“XRP is traded on over 200 exchanges around the world. It’s really only three or four exchanges in the United States that have halted trading.”

Financial regulators around the world are looking to decide how they should regulate the crypto industry. The results of their assessment can determine whether the cryptocurrency will evolve into a major asset or remain the right product.

While Bitcoin is considered a commodity by U.S. financial regulators, most other cryptocurrencies have yet to be classified as commodities or securities.

Ripple has signed more than 15 new contracts with banks globally since the SEC filed the lawsuit. And lack of clarity in the United States is an obstacle to innovation. XRP’s liquidity has grown outside of the US and continues to grow in Asia, certainly in Japan.

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