After the sensational statements made regarding the news that the Securities and Exchange Commission (SEC) of the United States is preparing a lawsuit against the alleged unlicensed issuance of tokens by Ripple, now Brad Garlinghouse risks being left alone. His attempt to make such a decision look like a crusade against the entire crypto world seems not to have found much support from it. Let's go and see why.
The statements of Brad Garlinghouse
In response to what was leaked about the now imminent opening of a lawsuit by the SEC, the CEO of Ripple had given rise to a series of sensational statements. In particular stating that the commission's real target was not Ripple, but the entire crypto industry.
He then added that the only cryptocurrencies to stay out of this crusade would be Bitcoin and Ether. That is, the networks controlled by the Chinese Communist Party, thus implying a sort of collusion of the US government with the eastern giant. A political connotation which, clearly, did not really like the sector of monetary innovation.
The world of cryptography supports the thesis of the SEC
In fact, by return of post, the response of some important figures of the cryptographic community arrived. Starting from Samson Mow, CSO of the company Blockstream, who had no qualms in stating that there is nothing encrypted or innovative about Ripple.
A judgment which certifies in the most blatant way possible the evident annoyance of many people in the sector for an asset considered as an intruder or a little more.
The controversial relationship between Ripple and XRP
Among the reasons that have caused the annoyance of large sectors of cryptography, there is in particular the controversial relationship between Ripple and XRP.
Ripple, in fact, claims to have nothing to do with XRP, despite holding over 50 billion tokens. Moreover, for some time now it has been known for the sale of enormous volumes of the same on the open market. And, again, Ripple contributes to the code Ledger, used for XRP. Enough to make his justifications seem like a kind of provocation, hard for the rest of the digital asset industry to digest.
Ripple: what could happen now
While the case is mounting more and more, the lawyer Jake Chervinsky, general counsel at the decentralized finance app Compound, launched a quite sensational hypothesis. Indeed he stated that XRP may be banned from several regulated exchanges in the United States.
Failure to do so, in fact, could push the SEC to take action against the platforms, accusing them in particular of selling an asset not allowed to investors stationed in the United States.
Brad Garlinghouse's move risks becoming a boomerang
Judging by what is happening, the decision to Brad Garlinghouse to enlarge the battlefield seems to have turned into a real one boomerang, from the very first steps. With a further negative consequence, namely that of making investors focus on the issue.
The result of this overexposure was immediately felt on the market. Ove XRP quickly fell in the order of 10% within hours. A collapse which, moreover, risks worsening with the passing of the days. Especially if the company prefers the line of confrontation with the SEC.