In the latest development regarding the Ripple lawsuit, Brad Garlinghouse took it to Twitter, writing that SEC acknowledged that they did not order or ask anyone to halt trading / delist. The SEC mentioned that the crypto market was under pressure and hence impacting the retail holders.
Hence, they argue, retail holders shouldn’t blame the SEC but instead blame the exchanges. Following the SEC case, several exchanges delisted XRP, and MoneyGram, the world’s second-largest money transfer service, also suspended its relationship with Ripple. But in parts of Asia, like Japan, Ripple continues to be strongly supported.
Ripple Lawsuit Developments
Following the SEC’s suit against Ripple in December 2020, XRP price decreased by over 60%, from nearly $0.60 a month earlier to $0.25. At the time of publishing, the XRP price in the past 24 hours is at $0.4674, 1 percent higher.
The lawsuit against Ripple is over whether XRP transactions are investment contracts and thus registered securities according to Section 5 of the Securities Act of 1933.
Referencing the remarks made in June 2018 by former SEC Corporation Director William Hinman, Bitcoin and Ethereum were not treated as securities. Ripple stated that it had interpreted these remarks to suggest that SEC would allow today’s virtual currency sales, given the current market conditions for XRP.
The San Francisco-based payment technology company Ripple presented additional information in a 100-page legal document submitted on 4 March in response to the SEC’s first modified complaint. The report said that before the SEC complaint, several participants transacted in XRP for years believing that the contract was not an investment agreement.
The latest filing from Ripple is a reply to the SEC complaint and follows the previous pre-trial meeting. Given the possible effect on XRP investors and the legal precedent it could set for other cryptocurrencies, the industry is closely following this case.
Ripple Piloting a Private Ledger for CBDCs
While there are unclear results from Ripple’s legal battles with SEC, Ripple is moving its XRP Ledger (XRPL) in a new path for digital payments.
Ripple revealed earlier this week it was planning a private central bank leader for digital currency issuance and management. According to Ripple’s blog post, central banks are more likely to provide more confidentiality and close watch of their currencies than to create a CBDC on a private ledger. It is also crucial that the financial system, CBDCs, and digital currencies can get linked to interoperability.
Ripple states its CBDC Private Ledger is designed for payment purposes and could be used to make it easier and more expensive than public blockchains with proof of work involving CBDCs and other currencies.