Ripple (XRP) has long been embroiled in a complicated lawsuit against the US Securities and Exchange Commission (SEC). However, several sources report that Ripple’s business outside the United States is going well.
At the end of last year, the SEC sued Ripple over the illegal sale of so-called securities, in the form of XRP tokens. Since then we have seen motion after motion in the case, each with the aim of convincing the judge that XRP is not, or is, a security. If the judge goes for the latter, Ripple would be in deep trouble in the US. It would then have to pay hefty fines and the network would in principle no longer be usable within the borders of the country.
In one of Ripple’s most recent moves, the company hopes to corner the regulator. It is trying to prove by means of requested documents that SEC employees were in possession of XRP at the time when the SEC would have already indicated that XRP are securities. You can read more about this in this article.
But Ripple’s network, which is mainly focused on facilitating fast and cheap international payments, is of course also active outside the US. And overseas, Ripple’s business would still be good. Sources close to Ripple are said to have told FOX News’ Charles Gasparino:
“People close to Ripple say that while the SEC Enforcement case over XRP has hurt its domestic business, its business abroad is thriving, further evidence that the SECGov crypto enforcement agenda is forcing innovation to take place outside the US. ”
BREAKING: People close to @Ripple say while the @SEC_Enforcement case over XRP has hurt its domestic biz, it’s business is thriving overseas, further proof the @SECGov crypto enforcement agenda is forcing innovation to occur outside the US. Story developing
— Charles Gasparino (@CGasparino) September 18, 2021
Gasparino argues that the SEC’s action and the potential negative impact on Ripple will eventually drive innovation away from the US. It will be interesting how this case develops in the coming months!