MoneyGram has decided to sever relations with Ripple. A decision naturally due to lawsuit filed by Securities and Exchange United States Commission vs. Ripple Labs, for the illegal sale of unauthorized securities going on for years.
This is yet another hard blow for the Californian company, already struggling with the delisting carried out against XRP by many cryptocurrency exchanges. And it might not even be the last.
MoneyGram will no longer use Ripple's XRP-based liquidity product. The reason for the decision is to be found inatmosphere of uncertainty currently weighing on the cryptographic asset, as a result of the lawsuit filed by the SEC.
However, this is a completely logical decision. Especially in light of the fact that according to some experts the prolonged partnership with Ripple could expose the companies concerned to heavy legal retaliation.
As for MoneyGram, it used Ripple as a means to facilitate international payments. A service which is now expiring pending news on the judicial front.
The difficulties for Ripple are now on the agenda
MoneyGram's decision adds to those already made by many exchanges crypto, starting from Coinbase e Binance. Who had stopped trading on XRP for their customers scattered throughout the United States. Greyscale had also decided to part with Ripple, fearing the association with a company that at this moment can be considered as a real plague. In fact, the SEC does not seem to have the slightest intention of reaching an out-of-court settlement. Like the rest of the top management, starting with the CEO, Brad Garlinghouse, seem willing to do battle without bothering to prepare an alternative plan.
Agreements between the parties are currently excluded
If someone thought about the possibility of an settlement before the dispute was landed in court, the news coming from the counterparties seems for the moment to rule out a hypothesis of this kind.
Particularly the SEC seems sure of its reasons and determined to get to the bottom. Moreover, many observers are in turn convinced of the fact that the body responsible for supervising the US financial markets has had the opportunity to create a balance accusatory system, given the time available. A belief which, moreover, seems shared by a large part of the cryptographic space. For years now in open controversy with Ripple, considered as a simple speculation.
Not an easy time for cryptocurrencies
It should also be noted that the SEC's dispute against Ripple is increasingly taking one a turn that goes beyond the simple sale of unauthorized securities by the company. In the last few hours, in fact, it has returned to thunder Janet Yellen, the treasury secretary of the new Biden administration. Which has not only indicated in Bitcoin a speculative tool, but also underlined once again how digital money represents a means capable of facilitating the criminal economy.
An offensive which could identify in the dispute between the SEC and Ripple the battlefield to try to downsize the growing role of cryptocurrencies. If so, for the Californian company, the cause could turn into a real Caporetto.