SEC has issued a whopping 71 page complaint against Ripple, the company behind XRP token.
In the complaint, SEC calls XRP a security so any cryptocurrency exchange would be crazy to list XRP without a license.
SEC has charged Ripple and its two executives with conducting 1.3 billion dollars unregistered initial securities offering.
Allowing investors, especially millions of retail investors, to keep buying a digital asset you suspect is an unregistered security, is really a breach of duty of care on your behalf. Shocking that you should actually be suing yourselves, not Ripple.
This suit is against Ripple, not XRP. XRP exists independently of Ripple. Moving forward if XRP were to stand alone on the assumption Ripple is forced out of business, what would that look like? Clearly, XRP’s reputation depends on Ripple and they sell XRP for profit.
If the SEC wins this and the complainant is far from weak Ripple Labs is unlikely to remain a going concern. It has always been a currency speculation play. Never thought for one second that my holding of XRP gave me some rights or interest in Ripple the company.