Ripple asks the SEC why Bitcoin and Ethereum are not securities

Ripple, the company, filed an answer to the United States Securities and Exchange Commission (SEC) lawsuit. It contends that the charges of issuing unregistered securities are built on an unprecedented and ill-conceived legal theory.

Among other things, this theory ignores the fact that XRP performs a number of functions not characteristic of securities, the 93-page document states. For example, XRP functions as a medium of exchange — the digital currency is currently used in cross-border and domestic transactions, moving value between jurisdictions and facilitating the settlement of trades. It is not a security, and the SEC has no authority to regulate it.

Ripple has requested information on why the agency does not classify Ethereum as a security, which “also functions as a medium of exchange”.
Also in the document is mention of “China’s control” over Bitcoin and the second-largest cryptocurrency by market capitalization.

Accelerating progress on this matter is necessary because, as you know, after the SEC filing the XRP token lost almost half of its market value. As a result, Ripple-unrelated retail XRP holders — those very people whom the SEC is trying to protect — incurred losses. Moreover, the SEC’s mission includes maintaining order in markets. However the regulator’s overreach has sown chaos in the market.

Ripple Answer Filed by ForkLog on Scribd

Earlier this year, in Florida, a lawsuit was filed against Ripple Labs and CEO Brad Garlinghouse . They are accused of violating state securities laws and engaging in illicit enrichment.

In late December, the SEC filed a lawsuit against the company, accusing it of selling unregistered securities in the form of XRP. Garlinghouse noted that the company is prepared to engage with the regulator’s new leadership to resolve the legal uncertainty.

In November, the head of Ripple expressed confidence that even recognizing XRP as a security would not undermine the company’s business .

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