The future axes of Ripple of Cryptocurrency in the case of the SEC


Brad Garlinghaus, CEO of Ripple, last year publicly considered at the World Economic Forum in Davos, Switzerland, an initial public offering for a startup in San Francisco.

The company has just raised about $ 200 million in a risk-taking round led by the Tetragon Financial Group, with a valuation of $ 10 billion. The value of its signature product, a cryptocurrency called XRP, has declined over the previous year. But Ripple was about to rebuild its cross-border trading infrastructure, Gerlinghaus said, assuring that its future was bright.

A year later, an off-the-table offering. Instead, Ripple’s future depends on a judge’s ruling in a civil lawsuit filed in December by the Securities Authority.

Regardless of the outcome, the case is expected to become a major precedent for how U.S. regulators set rules and regulations that cover cryptocurrencies.

At the heart of the SEC’s lawsuit is a dispute over XRP, a bitcoin-like digital asset created by Ripple’s founders that will grow to be the third largest cryptocurrency in the world. It is designed to be part of a network that will help banks cut spending on cross-border transfers. The related software, however, never gained power, the SEC claims, leaving XRP with no clear purpose, other than to perform a funnel for sales to Ripple.

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