Ripple to leave the US market if it loses lawsuit against the SEC

The company will have to change its headquarters and close down its business in the US completely

27.06.2022 - 08:55

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2 min

What’s new? Ripple may change jurisdiction if it loses a legal battle against the US Securities and Exchange Commission (SEC). This was revealed by CEO Brad Garlinghouse in an interview for Axios at the Collision conference in Toronto. The regulator accused Ripple of selling unregistered securities under the guise of XRP tokens in December 2020.

The full version of the interview

What other statements have been made? The head of Ripple stressed that he believes the company will win and the final ruling in the case may come as early as next year. Garlinghouse also noted that the lawsuit is going “exceedingly well” than he could have imagined. He believes that the company’s win will set a positive precedent for regulating other cryptocurrencies.

If Ripple loses the lawsuit and the SEC recognizes XRP coins as securities, the company will continue to operate, but in a different jurisdiction. In addition, according to Garlinghouse, other crypto projects will be at risk and will be forced to move their business outside of the United States.

Ripple is a payment protocol for exchanging currencies and making transactions. It is used by government financial institutions in Australia, Canada, and Israel. The platform’s native token, XRP, is ranked sixth in the ranking of cryptocurrencies by market capitalization with a figure of $17,6 billion. As of June 27, 08:50 UCT, the asset is trading at $0,36, having lost 1,49% in price in 24 hours, according to Binance.

On June 22, Ripple announced the opening of its first office in Canada. The new office in Toronto will become the company’s main engineering hub. Ripple plans to hire more than 50 people for the new office, including scientists in applied machine learning, data processing, and product managers.

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