In 2020, the US SEC accused Ripple and its co-founders of violating securities laws by selling their native cryptocurrency XRP without first registering it with the SEC.
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US-based cryptocurrency company Ripple says it intends to fight “all the way through” the ongoing lawsuit with the U.S. Securities and Exchange Commission.
“We intend to continue to fight the case to the end,” Monica Long, Ripple’s president, told CNBC on Monday.
The lawsuit between Ripple and the SEC has been going on for almost three years.
In 2020, the SEC accused Ripple and its co-founders of violating securities laws by selling $1.3 billion of its native cryptocurrency XRP without first registering it as a security.
Ripple disputed the claims, emphasizing that XRP cannot be considered a security and is more like a commodity. In July, a landmark ruling by U.S. District Judge Analisa Torres ruled that the token was not necessarily a security.
“We also received clarity in that lawsuit. And the judge’s order in that case was very clear that XRP itself is not a security, which opens the doors for us to really expand our business – not just in the US, but even more globally,” Long said.
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Ripple’s legal team said in a filing that the SEC’s request for an appeal stemmed largely from “dissatisfaction” with the judge’s ruling that the XRP token did not qualify as a security for sale to retail investors.
Ripple’s president told CNBC that the company wants to “operate above board” and comply with regulators. In June, Ripple received in-principle approval to offer regulated crypto services from the Monetary Authority of Singapore.
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“We have always been very involved with regulators and policymakers, and it is simply in our DNA. When we build [a] product, compliance is in the room. They take a seat at the table,” Long said.
On Friday, Ripple said it will acquire crypto infrastructure startup Fortress Trust for an undisclosed amount. This follows the acquisition of Swiss crypto custody company Metaco in May.
“So the point of trust, we really value that as a player in the financial industry, and we are now a regulated financial services provider with these licenses,” Long said. “You always have to operate above board.”