The head of Ripple, Brad Garlinghouse, announced his intention to file a motion to dismiss the exchange regulator’s accusations due to abuse of power
Ripple chief executive Brad Garlinghouse has filed a letter of intent to petition to dismiss the updated charges from the US Securities Exchange Commission (SEC). About this he wrote on my Twitter page.
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According to the letter, the exchange regulator actually acknowledged the flaws in its original complaint by amending the charges on February 18, 2021. At the same time, as noted in the letter, the adjusted complaint of the regulator has not improved.
“To put it simply, SEC approvals are an abuse of power,” Garlinghouse said.
According to Garlinghouse, the SEC failed to properly explain the nature of the accusations, according to which Garlinghouse allegedly knew or recklessly ignored the fact that XRP transactions were investment transactions.
Ripple ignores noise
However, despite the litigation, the fintech company intends to continue moving towards digitalization of banking services. So, for example, in Ripple announced testing a private version of the XRPL ledger for central banks. It is assumed that with its help financial institutions will be able to create and manage their digital currencies (CBDC).
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However, such an announcement has not yet affected the development of the XRP token. Even in the announcement itself, Ripple decided to minimize the mention of XRP by noting only the turnover of the token within the XRPL registry. Nevertheless, the XRP community considered this news sufficient for a short-term rise in the price of an asset.
At the time of writing, the XRP / USDT token is up 2.5% and is trading at $ 0.46.
Read also: SEC vs. Ripple: Telling Who Is to Blame and What to Do
Earlier, the editorial staff of BeInCrypto reported that the first court hearings in the case of Ripple against the SEC took place. So, during the hearings, the lawyers of the fintech startup said that the exchange regulator should have warned market participants that XRP is a security, which, however, did not.
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