The Chief executive officer of Ripple firm explained how the US Securities watchdog dragged itself under the contradictory situation through the lawsuit against Ripple and at the same time approval of Coinbase IPO.
Ripple is a San Francisco-based firm. This company provides global payment services with the use of XRP Token liquidity under the decentralized system. XRP is the native token of the XRP ledger blockchain and the use of this token by the Ripple company to facilitate payment is under question. The US securities and exchange commission (SEC) filed a lawsuit against Ripple firm in Dec 2020. According to the SEC agency, Ripple violated securities law and also manipulated the price of XRP tokens for self advantages.
On the occasion of the Collision technology conference in Toronto, Ripple CEO Garlinghouse said that SEC employed contradictory tactics when it approved Coinbase’s S-1 initial public offering (IPO).
Ripple CEO explained that when Coinbase was allowed for IPO then at that time Coinbase was offering XRP Trading, which was unregistered security under the point of view of the SEC agency.
“When Coinbase went public, which wasn’t that long ago, Coinbase was trading XRP. They enabled consumers and businesses to trade XRP.”
Garlinghouse further explained that the Securities body had to approve their S-1 such that Coinbase could go public. Now the SEC seems to take the position when they filed a lawsuit against the company and said “Hey, XRP is a security and always has been“.
Ripple CEO claimed that when Coinbase was allowed to go public then at that time Coinbase was also not registered as a crypto broker or crypto dealer. So in this way, the SEC agency was already in a huge contradictory state in many aspects.
Garlinghouse said that majority of the people in the crypto industry are willing to remain under the precise rules and regulations, so it is very important for the government to remain always clear and consistent with regulatory policies across the board.