Economy

A Ripple lawsuit could lead to billions in losses for “ innocent third parties, ” says a former SEC commissioner.

The cryptocurrency community is extremely curious about what will happen to Ripple Labs and the origin of the token XRPAfter the U.S. Securities and Exchange Commission (SEC) recently filed a lawsuit against Ripple and its two executives. On December 25, the large cryptocurrency exchange company Bitstamp announced its deletion XRP For American clients, a former SEC commissioner believes that the lawsuit will result in billions of dollars in losses to innocent third parties.

Drops cryptocurrency exchange Luxembourg XRP US Customer Support: “We will closely follow the changing situation and adapt accordingly”

One of the more substantive conversations in the cryptocurrency space, along with the ever-high prices, is the recent accusations against Ripple Labs brought by the U.S. Securities and Exchange Commission (SEC). Supreme Education Council He said The regulator “has sued Ripple Labs Inc. and two of its executives, who are also significant holders of securities, alleging that they have raised more than $ 1.3 billion through an unregistered offering of the digital assets.”

After the SEC fees, three exchanges (OSL, Crosstower, and Beaxy) decided to abandon XRP Support alongside the fund Bitwise asset management. On December 25, 2020, the Luxembourg cryptocurrency exchange, Bitstamp, was traded. Advertise Will stop XRP Services to all US customers Jan 8, 2021. In a blog post on this topic, Bitstamp said:

In light of the recent SEC lawsuit against Ripple Labs Inc. , And which it claims XRP It is a security, we will stop all trading and deposits for XRP For our customers in the United States on January 8, 2021 at 9 PM UTC. We will closely follow the development of the situation and continue to adapt accordingly. Our US customers will still be able to withdraw XRP From Bitstamp. Customers from other countries are not affected.

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The XRP Work is also underway as chair of the Securities and Exchange Commission Jay Clayton He decided to resign. Commissioner of the Supreme Education Council, Hester Pierce, On Twitter, about the appointment of Elad Roisman as Acting President of the U.S. Financial Regulatory Authority. “Congratulations, chairman of Roisman,” Pierce chirp On December 24th. She added, “I look forward to your leadership of the Securities and Exchange Commission.” Moreover, The Block’s Frank Chapparro He got a letter from Joseph Grundfest, former commissioner of the US Securities and Exchange Commission.

Former Commissioner of the US Securities Commission, Joseph Grundfest.

according to Message To Jay Clayton, he alleged that Grundfest said that Ripple’s lawsuit was “unprecedented” and that “there is no compelling reason to require immediate enforcement.” “The views of the administration and the upcoming Congress regarding the regulation of transactions similar to those in question could differ significantly from the current views,” details of the Grundfest speech.

The former SEC Commissioner also wrote:

Merely proceeding with the action would do great harm to the innocent owners XRP, Regardless of the final resolution. When the action is known, the middlemen will stop engaging XRP Because of the legal risks associated with this. The resulting decrease in liquidity will result XRPReduced value.

The Acting SEC Chairman Eld Roisman reportedly discussed the development of cryptocurrency markets in 2018. “The SEC should examine and re-examine its rules, regulations, and guidelines to ensure that they are still operating as intended to fulfill the SEC’s mission. “, He said in time. “This has been evident recently in areas such as data protection and cybersecurity, as well as the emergence of new investments and technologies such as initial coin offerings and the blockchain.”

What do you think about dropping Bitstamp XRP For US clients and the message from former Commissioner Joseph Grundfest? Let us know what you think about it in the comments section below.

The signs are in this story

BitStampAnd the BlockchainAnd the Digital currenciesAnd the Elad RoismanAnd the Hester PierceAnd the ICOAnd the Innocent InvestorsAnd the Jay ClaytonAnd the Joseph GrundfestAnd the lossesAnd the Ripple LabsAnd the Suit rippleAnd the SECAnd the Second head Jay ClaytonAnd the SEC CommissionerAnd the GuaranteesAnd the Third partiesAnd the United States SECAnd the XRPAnd the xrp suit

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