SEC lawsuit will cripple crypto: Ripple CEO
Ripple CEO Brad Garlinghouse addresses the Securities and Exchange Commission's lawsuit over the XRP cryptocurrency. Subscribe to CNBC PRO for access to investor and analyst insights on crypto and more: https://cnb.cx/2BT2E7y
The Securities and Exchange Commission filed charges Tuesday against Ripple, the fintech company best known for cryptocurrency XRP, and two of its executives, for allegedly violating investor protection laws.
The SEC alleged that Ripple, co-founder Christian Larsen and CEO Bradley Garlinghouse, raised more than $1.3 billion through an unregistered securities offering.
“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 and other important long-standing protections that are fundamental to our robust public market system,” Stephanie Avakian, director of the SEC’s Enforcement Division, said in a press release.
Garlinghouse had expected a lawsuit to be filed before Christmas. In a statement late Monday, he said the expected SEC’s suit was “fundamentally wrong as a matter of law and fact” and questioned its timing.
“XRP is a currency, and does not have to be registered as an investment contract,” Garlinghouse said.
XRP was created and distributed by the founders of Ripple in 2012, and is designed to facilitate fast cross-border payments. The value of the currency against the U.S. dollar has approximately doubled since early November, thanks to a spike in the latter part of that month, but it’s still down more than 80% from its peak in late 2017, while rival cryptocurrency Bitcoin recently hit an all-time high.
The company was last privately valued at $10 billion and is backed by the likes of Japanese financial services giant SBI Holdings, Spanish bank Santander and top venture capital firms including Andreessen Horowitz, Lightspeed and Peter Thiel’s Founders Fund.
Ripple ranked No. 28 on this year’s CNBC Disruptor 50 list.
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Ripple CEO Brad Garlinghouse addresses the Securities and Exchange Commission’s lawsuit over the XRP cryptocurrency. Subscribe to CNBC PRO for access to investor and analyst insights on crypto and more: https://cnb.cx/2BT2E7y
The Securities and Exchange Commission filed charges Tuesday against Ripple, the fintech company best known for cryptocurrency XRP, and two of its executives, for allegedly violating investor protection laws.
The SEC alleged that Ripple, co-founder Christian Larsen and CEO Bradley Garlinghouse, raised more than $1.3 billion through an unregistered securities offering.
“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 and other important long-standing protections that are fundamental to our robust public market system,” Stephanie Avakian, director of the SEC’s Enforcement Division, said in a press release.
Garlinghouse had expected a lawsuit to be filed before Christmas. In a statement late Monday, he said the expected SEC’s suit was “fundamentally wrong as a matter of law and fact” and questioned its timing.
“XRP is a currency, and does not have to be registered as an investment contract,” Garlinghouse said.
XRP was created and distributed by the founders of Ripple in 2012, and is designed to facilitate fast cross-border payments. The value of the currency against the U.S. dollar has approximately doubled since early November, thanks to a spike in the latter part of that month, but it’s still down more than 80% from its peak in late 2017, while rival cryptocurrency Bitcoin recently hit an all-time high.
The company was last privately valued at $10 billion and is backed by the likes of Japanese financial services giant SBI Holdings, Spanish bank Santander and top venture capital firms including Andreessen Horowitz, Lightspeed and Peter Thiel’s Founders Fund.
Ripple ranked No. 28 on this year’s CNBC Disruptor 50 list.
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
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Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast
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Sec waited till the Biden crew to change the rules to fit big Government. Sad day, again. No free market. IMO all crypto currency’s are on there list. Big Government changes there own rules as they need them too.
Honey badger don’t give a sh*t. Honey badger takes what it wants.
Are you aware of the letter a you tuber located in the U.S Treasury to Brian Brooks from Satoshi Nakamoto??????? Take a look. https://youtube.com/c/BiggerThanRace
BUY XRP, don’t let the puppets scare you to liquidate your positions. Even if you bought in at .72, hold it
charts makes news nothing else just to shake out week hands
I want to know about bit coin .is this real or fake.anyone tell me the truth
I think Brad was blinking so many times to tell you something. I honestly think it was done purposely.
This woman is gorgeous.
no mention of his market manipulation in here..hmm
Garlinghouse blinking rapidly equals guilty and lying.
My advice to everyone is to invest in cryptocurrency especially bitcoin is $27k and might hit $33k soon
Sec will not cripple anything the crypto market will push on
back paddle.. back paddle… dude .. you set up shop in the US.. you printed 100 billion coins… no mining.. no proof of stake lottery mechanism… you just flat out counterfeit the coins from thin air and sold half of them.
Gave them away as promotional items.. you scammed the public and now your feet are in the fire.
If you had made an issuance model, then competed alongside the rest of the world for the coins.. great, thats a commodity. You guys are scammers at the highest level. Proof of burn??.. yep youre gettin burnt now
The title is so misleading
The SEC really not gonna like HEX then
This guy will go down in history as the single greatest con artist to have ever lived OR he will end up with all of the money and be named emperor of the universe and you will all be his slaves…..still making him the greatest con artist in all of history.
As Garlinghouse said, most of the XRP is traded on exchanges OUTSIDE THE US. So FINE, if some judge wants to declare XRP to be a security, it'll just continue trading on exchanges outside the US. I'm sure the bankers hate XRP; and no doubt Steven Mnuchin hates XRP. But the US government can't shut down XRP.
Read the FULL lawsuit. XRP is a Ponzi scheme.
Meanwhile Ripple has had an ex SEC Chairman as legal counsel for years and Fincen, US Treasury as well as every other country on the planet says its a currency. This was a shakeout for weak handed fools.
Still long bitcoin then Mr garlinghouse? Bitcoin created the first ever scarce, fixed, secure, and capped total in human history. Your a con man and anyone with a bit of sense saw through all your public relations corporate nonsense
and… xrp bounces today WAY above where every single person I know bought it. 😉
Huge surprise all the noobs jumping up and down that "it's going to zero" knew less than nothing about securities law or current central bank meeting.
Just. Shocking. These noobs got it wrong after… what is it now? 3 whole days since the SEC announcement??? HAHAHAHAHAHAHAHAHA.
People never learn.
It's one of the fastest and least expensive cryptos in the entire market to ACTUALLY USE AS MONEY.
If you think that's going away… jump and down like a noob! You'll have plenty of company!
Ripple’s business model is dumping loads of XRP on folks that buy into their marketing scheme. I believe SEC will win this one. Ridiculous to even compare this garbage to BTC or ETH.
peter thiel , trump supporter, owns most of these – again created out of thin air and now given valuations – I am just waiting for the aliens to take all the blame for everything Covid can't – when Private equity and hedge funds are involved you can bet your sweet a** it is corrrupt.
corruption is the answer to all things these days – there is no truth and all is corruption corruption corruption – and lies lies lies –
XRP will skyrocket 🚀 give it a week. Buy the dip guys buy the dip. Government is as corrupt as Trump and so is his team. Haha
Simply put. Ripple is not the crypto currency XRP. Good to know!
Not only my fans dumbed the USD , USD bonds and USD stocks.
Other actresses and actor's fans is also dumping the USD , USD bonds and USD stocks
Finally, the end of the Ripple monthly ICO. This is good for the rest of crypto. I think I'll blink my eyes 1000 times in 5 minutes to celebrate!