1.5 minute read
- Ripple CEO answers community questions on SEC lawsuit.
In recent weeks and months, the San Francisco-based blockchain company known as Ripple has been hitting headlines but not exactly for the right reasons. The United States securities and exchange commission slapped the company with a lawsuit last month and when the news broke, many members of the crypto community wanted to know why Ripple didn’t take any previous precautions to avoid the lawsuits going public.
It is an understandable question and to somewhat clear the air, the chief executive officer of the company, Brad Garlinghouse took to Twitter in a hefty 10 tweet thread trying to explain their reasoning.
The CEO said the company tried extremely hard to have an open conversation with the commission in order to settle the matter out of court before the case was officially filed. Of course, as we know, this amounted to nothing but he did stress the company will seek to find a settlement with the new incoming Administration in the US.
Ever since the commission filed the charges last month, the price of the native token to Ripple has taken a big hit. That being said, it hasn’t performed very well over the past year anyway so it’s hard to say whether it had that much of a big impact in the long run. Initially though, it did lose around 50% of its price valuation following the news going viral.
The CEO has insisted that the company has done nothing wrong when it comes to providing incentives to start-ups.
To start, the CEO highlighted why the company did not settle with the commission:
Q: Why didn’t Ripple settle with the SEC?— Brad Garlinghouse (@bgarlinghouse) January 7, 2021
Can’t get into specifics, but know we tried - and will continue to try w/ the new administration - to resolve this in a way so the XRP community can continue innovating, consumers are protected and orderly markets are preserved. 2/10
He then went on to note why he isn’t being as vocal towards the commission and why he isn’t responding regards to this lawsuit:
Q: When are you responding to the SEC? Why are you silent?— Brad Garlinghouse (@bgarlinghouse) January 7, 2021
The legal process can be slow! Things may seem quiet, but there is plenty happening behind the scenes. We’ll be filing our initial response within weeks. Legal eagle @s_alderoty shares more 6/10 https://t.co/PIAsgohcG5
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