Stuart Alderoty, the general counsel at Ripple Labs, took to Twitter today, to announce that Ripple Labs has filed an official response to the United State SEC’s amended complaint, for their lawsuit against Ripple.
The SEC had amended their complaint weeks ago.
The filing said that US Securities Exchange Commission is considering Xrp as a security, while conveniently exempting Bitcoin and Ether from adhering to regulations applicable to stocks and bonds.
Ripple says Xrp is a medium of exchange, a currency used in international and domestic transactions, not security. The firm also says Xrp is a better Bitcoin, as it has a better-distributed control.
“The SEC’s filing, based on an overreaching legal theory, amounts to picking virtual currency winners and losers as the SEC has exempted Bitcoin and Ether from similar regulations”. Ripple said.
Damages to XRP holders
According to Ripple, the filing of complaint has caused harm to Xrp holders as many exchanges, traders, and market makers have stopped their trading activity in relation to Xrp, which has reduced the value of Xrp holdings significantly.
It says that the lawsuit has turned out to be more harm causing than protecting, an allegation of a mere $1.3 Billion unregistered securities offering has caused $15 billion in damages to those who they “purport to support”.
Mr. Aldorty in a subsequent tweet mentioned that they are looking forward to learning more about SEC’s meetings with the Xrp market participants who were unaware that the transactions are subject to federal security laws.
This lawsuit was filed by US SEC against Ripple Labs, co-founder Chris Larsen, and CEO Bradley Garlinghouse for allegedly deceiving investors by selling $1.3 Billion unregistered tokens.
Chris Larsen and Bradly Garlinghouse have also filed a motion to dismiss the amended complaint, just yesterday.