Cryptocurrency Company Ripple Facing an S.E.C. Lawsuit
In an unusual move cryptocurrency company ripple ceo brad garlan house told fortune that the securities and exchange commission is going to file a lawsuit against ripple in the near future for allegedly selling unlicensed securities with garlan house and co founder. Chris larson named as defendants at issue is whether x. p. which is a digital currency associated with ripple is a security which must be registered with the sec like a stock would be or an actual currency. That doesn't the sec previously ruled. The bitcoin and a theory are not securities in part because they're decentralized with no person or company at the helm and are minted through mining process. Back in twenty twelve ripple created one hundred billion units x. rpi for a company called ripple. Labs gardellin halston larson each significant amount of x. arpey but say they don't have access to reserve funds off schedule and extra p. is no more decentralized as banks and merchants use it as a bridge currency in cross-border transactions.