- Ripple has formally begun its defense against the US SEC lawsuit.
- CEO Brad Garlinghouse wrote that they “stand shoulder to shoulder” with their partners to defend Ripple.
- The SEC has yet to reply to Ripple’s defense.
Embattled Ripple has formally begun its defense against the US Securities and Exchange Commission’s (SEC’s) lawsuit. Through a legal document, Ripple aims to “request dismissal of the [SEC] complaint on any and all grounds.”
Last month, the SEC filed a lawsuit against the Ripple company, CEO Brad Garlinghouse, and Executive Chairman Chris Larsen. As per the SEC, Ripple sold XRP without registering it, even though the SEC considers it a security. In the US, securities need to be registered with the appropriate authorities before initiating any form of sale.
However, Ripple flatly denies the allegations, claiming that XRP does not classify as a security.
Garlinghouse wrote in a tweet,
Our defense begins today [January 29]. Innovation is on trial, and we stand shoulder to shoulder with our partners & the community to defend it.
According to Ripple General Counsel Stuart Alderoty, the company will “set the record straight” as well as point out misconceptions and contradictions within the allegations.
In a company update, Alderoty summarized the legal document, saying that XRP is not an investment contract. He also said that the SEC is “out of step”, both domestically and globally. He also claimed that the SEC is “picking winners and losers”, and that it has distorted the facts.
Meanwhile, the SEC has yet to respond to Ripple’s defense. Also, the crypto community has yet to hear about the trial.