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Ripple Claims Crypto Exchanges Discussed XRP’s Status with the SEC

On Ripple’s recent filing on Thursday night, the company says that XRP market participants, such as cryptocurrency trading platforms, discussed the XRP’s regulatory status with the United States Securities and Exchange Commission (US SEC) before listing the asset to their platforms.

Different payments and remittances startups closely associated with Ripple’s native cryptocurrency XRP filed a response to the amended complaints submitted by the US SEC. The amended complaint from the agency alleges that Ripple violated federal securities laws.  

Ripple denied each of the claims the US SEC listed on their complaint paragraph-by-paragraph. This rebuttal is reminiscent of the strategy Kik, a messaging platform, used on its legal battle when it faced the US SEC two years ago.

Caption: Ripple responds to the amended complaint submitted by the SEC

Caption: Ripple responds to the amended complaint submitted by the SEC

A majority of Ripple’s recent response resembled their initial reply to the US SEC’s claims the company filed in early January. The most recent response is a reply to the newly amended claim that the US SEC filed mid-February this year.

As it had in January, the company said it reserved the right to file a motion to dismiss the complaint at another time. However, it continued to argue that XRP is not a security and didn’t violate any laws while selling XRP in the last eight years. 

The new response also leaned more towards the claims that crypto trading platforms had discussions with the US SEC about whether to list the XRP on their platforms. An unnamed company referred to as “Platform A” reportedly evaluated the XRP’s regulatory status with prior SEC guidance and actions. 

However, Ripple did not name the platform. Others speculate that this may be Coinbase as it is one of the most prominent US-based cryptocurrency exchange platforms that listed XRP in 2019.  Ripple said that “Platform A” was not told that XRP is a security by the US SEC, prompting the platform to list the cryptocurrency shortly after.

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Jamie West

Jamie is an XRP veteran & keeps his finger on the pulse when it comes to all things crypto.

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