The regulator’s lawsuit did not affect the expansion of Ripple in Asia and Japan
Since the SEC sued Ripple, Garlinghouse has signed contracts with 15 new banks.
The lawsuit from the US Securities and Exchange Commission (SEC) did not affect the expansion of Ripple in the Asia-Pacific region in any way. The head of the blockchain company, Brad Garlinghouse, spoke about this in an interview with Reuters.
“This [lawsuit] is interfering with US activities, but it hasn’t really affected what happens to us in the Asia-Pacific region. We have continued to develop our business in Asia and Japan because there is regulatory clarity in these markets, ”Garlinghouse said.
“It is not very easy, but another highlight of how crypto success is reliant on country-specific regulations. The SEC alleges XRP is a security and Ripple, Brad Garlinghouse, and Chris Larsen sold unregistered securities.” says Bohdan Prylepa CTO of Prof-it Blockchain Ltd and COO in Bitcoin Ultimatum. “Ripple lawyers are firing back, saying they didn’t hold an ICO. Owning XRP doesn’t imply obligations of Ripple to share revenue and profits with coin holders. They also rope in Ethereum and the Ethereum Foundation. I’m closely watching this even though the case may lag for months, if not years. However, the regulatory clarity that comes after that, even if it’s settled out of court, will be massive for Ripple—as a for-profit company, and XRP—the digital asset.” – he added
- The SEC accuses Ripple of an unregistered sale of securities under the guise of XRP tokens worth $ 1.3 billion. Amid a conflict with the regulator, many cryptocurrency exchanges, including Coinbase, Bitstamp and Bittrex, have restricted XRP transactions on their platforms. Ripple’s longtime partner, the payment company MoneyGram, also refused to use the token .
- However, according to Garlinghouse, XRP is traded on more than 200 cryptocurrency exchanges, and since the SEC sued Ripple, the company has signed contracts with 15 new banks. The executive noted that the volume of transactions in XRP has grown outside the US and continues to grow in Asia and Japan.
- In mid-January, the Financial Services Agency (FSA) of Japan – the agency that regulates the local securities market – recognized XRP as a cryptocurrency. In the country, Garlinghouse’s company is also supported by the financial holding Nomura and the conglomerate SBI Holdings.
- Garlinghouse filed a motion with the court on Thursday to dismiss the SEC’s claim. In his letter, the head of Ripple called the complaint unfounded and accused the regulator of abuse of power.