The SEC lawsuit against Ripple Labs hits XRP investors particularly hard. The lawsuit is official, there have been countless write-offs of XRP for US customers on cryptocurrency exchanges. There is a massive outflow of investor capital. As a result, the price of XRP drops more than 50% in less than 14 days.
However, not all XRP investors want to accept this. They view the SEC’s decision to file a lawsuit against Ripple as an illegal action. Several XRP investors have filed a lawsuit in Rhode Island U.S. District Court against the SEC and Elad Roisman. Out of a total of 96 pages, the applicants explain why XRP is not a security under US law.
Petition against SEC lawsuit against Ripple Labs
XRP investors say the SEC decision does not follow the guiding principle. The latter protects investors, promotes fairness and disseminates information about companies. This helps investors make informed decisions and invest with confidence ”.
The petition also accuses the SEC of being inactive for more than 7 years. During this time, therefore the petitioners, a solution could have been found with the managers. However, this did not happen. This is why investors are now suffering billions of dollars in “unnecessary” losses. According to the petition, Jay Clayton “acted with improper motives” and caused irreparable damage to Ripple Labs and XRP.
Arguments for which XRP is not a security
One of the first arguments that XRP is not a security is the SEC’s rating of Bitcoin and Ethereum as unsafe. The petitioners claim that what is now the fifth largest crypto currency in terms of market capital is also traded on hundreds of exchanges. It is used as currency by up to 150 third party providers ”.
In addition, Ripple becomes SWIFT’s biggest challenger. It offers instant cross-border payments via XRP. In this regard, the petition also cites Brian Brooks, who publicly said the government should use existing private companies like Ripple and their technology to replace the SWIFT system.
Ripple recently introduced a plan to host CBDCs with the XRP token. XRPL could therefore host CBDCs and public and private institutions. They could adapt CBDCs to their needs. You can find all the other reasons given by the petition in the official document.
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