The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Ripple Labs Inc., naming co-founder Chris Larsen and CEO Brad Garlinghouse as defendants in the suit, for unregistered “digital asset securities” offering through which $1.3 billion was raised.
SEC sanctions XRP on the grounds it is a security
United States regulators argue that through the sale of XRP tokens, Ripple Labs has raised over $1.3 billion and that it is in violation of existent securities law, as the SEC has decided to rule XRP as a security. Per Stephanie Avakian, the Director of SEC’s enforcement division:
“We allege that Ripple, Larsen, and Garlinghouse failed to register their ongoing offer and sale of billions of XRP to retail investors, which deprived potential purchasers of adequate disclosures about XRP and Ripple’s business.”
The United States’ sanctions come as an inevitability, as the debate over whether XRP is classified as a security under the US…