1 August 2026
Ripple Officially Responds to SEC’s Lawsuit Over XRP Sale
Ripple- the San Francisco-based FinTech firm, has officially responded to the U.S. Securities and Exchange Commission (SEC) allegations over illegal XRP sale.
As per the documents filed in the United States District Court, Ripple has firmly disregarded the allegations raised by the SEC that the company was engaged in an illegal securities offering via the issuance of XRP to investors.
In an official statement, Ripple affirms that: “Ripple denies it engaged in any offering of securities; denies the inaccurate characterization of the legal advice Ripple received regarding XRP; and denies that it engaged in a single ‘offering’ of XRP.”
Ripple also claimed XRP didn’t fulfil the criteria for traditional securities regulation and denied that its original sale of the token did not include the SEC’s version of an “offering.” Additionally, Ripple also claimed that if XRP was deemed a security, it would hurt its utility as a means of payment.
In its affirmative defences, Ripple stated that before this case, no securities regulator in the world had claimed that transactions in XRP must be registered as securities. The functionality and liquidity of XRP are entirely incompatible with securities regulation. To require XRP’s registration as security is to impair its main utility. If XRP is deemed as a security, it will subject thousands of exchanges, market-makers, and other actors in the vast virtual currency market to lengthy, complicated and costly regulatory requirements never intended to govern virtual currencies.
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