"In the name of the industry." Why Ripple Labs has opened access to SEC

Why Ripple Labs closes access to the #SEC which considers the #XRP token to be a cryptocurrency exchange, regulators in SA are trying to connect devices with the XRP token to illegal transactions with connected securities, but the heads of Ripple Labs are determined to get acquainted with the descriptions. We tell you what resources they have.

The US Securities and Exchange Commission (SEC) has withdrawn a lawsuit against two executives of Ripple Labs in the case of the sale of XRP tokens worth $1.3 billion, and this was another stage in the confrontation of the cryptocurrency industry with traditional regulation.

The SEC's trial with Ripple Labs has become the cornerstone of the campaign to regulate the cryptocurrency sphere in the United States, and the trial itself is not over yet. The main US exchange regulator has been suing the company for several years — in December 2020, the agency accused it of selling unregistered securities worth $1.3 billion under the guise of #XRP tokens.

The SEC has filed a lawsuit against Ripple Labs itself and civil lawsuits against its executives — CEO Brad Garlinghouse and co-founder Chris Larsen. The #XRP token was then the third most capitalized crypto asset, second only to bitcoin and Ethereum.

The regulator is trying to equate the sale of XRP tokens by Ripple Labs to transactions with unregistered securities, and two company executives, according to the initial accusation, personally facilitated the sale of tokens to investors. But on October 20, the SEC announced the termination of the cases against Garlinghouse and Larsen.

Unequal struggle

It's not easy for cryptocurrency companies in the US to comply with Wall Street rules, and they mostly oppose the SEC's approach. Many of them have paid large fines to settle the claims of the regulator. For example, the Kraken exchange paid a $30 million fine when the SEC equated its staking service to earnings on unregistered securities.