The organization’s representatives believe that at the moment the future of the project is under threat.
Payment company MoneyGram announced the suspension of work on the basis of the tools of its strategic partner – California-based startup Ripple. The decision was made against the backdrop of the project’s proceedings with the American Securities and Exchange Commission (SEC). Information about this appeared in a press release from the company.
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- The official reason for the suspension of MoneyGram’s work on the Ripple platform is the uncertainty of the future project.
- Recall that at the end of 2020, the SEC filed charges against the startup team in the illegal sale of securities in the form of XRP tokens. The project representatives did not agree with the status of the cryptocurrency designated by the Commission.
- A preliminary hearing on the Ripple v SEC case took place yesterday. A few days earlier, the Commission updated the lawsuit against the startup.
- During the preliminary meeting, the Ripple team accused the SEC of not alerting investors to the alleged status of XRP. During the discussion of the parties, representatives of the startup drew attention to the fact that trading platforms had previously turned to the regulator to find out whether the project’s cryptocurrency is a security. According to the Ripple team, in response to inquiries, the SEC did not provide information that XRP can be classified as such an asset category. Startup advocates consider the abrupt change in the Commission’s opinion on the status of a digital asset strange.
- Ripple’s belief that XRP is not a security has prompted a petition to overturn the SEC’s claim. Against the background of the results of the preliminary meeting, the cryptocurrency rate showed growth.
Recall that in the fall of 2020, information appeared on the network that Ripple plans to make money by selling MoneyGram shares.