As you probably know by now, Ripple has been making headlines lately, but it was for all the wrong reasons – they are preparing to defend themselves from an upcoming SEC lawsuit.
Not too long ago, it’s been revealed that Ripple is about to face a massive SEC lawsuit.
Ripple said that it would defend itself against a lawsuit from the SEC that is claiming the company violated investor protection laws when they sold XRP.
Brad Garlinghouse released a statement from Ripple lawyer and former SEC enforcement Director Andrew Ceresney.
“The SEC is completely wrong on the facts and law, and we are confident we will ultimately prevail before a neutral fact-finder,” he said.
He continued and explained that “XRP, the third-largest virtual currency with billions of dollars in trading every day, is a currency like the SEC has deemed Bitcoin and Ether and is not an investment contract.”
Cardano creator, Charles Hoskinson addresses the issue
Cardano’s creator, Charles Hoskinson, also made sure to address this issue via a video.
In a series of AMA videos, Hoskinson said that part of the problem with regulating crypto assets is that tokens are dynamic and hard to categorize.
“The problem with cryptocurrencies is they do everything and nothing. And some days, they look like securities, some days they look like commodities, some days they look like currencies, and some days they look like something else entirely,” he said.
He continued and explained that “In many ways, cryptocurrencies are the stem cells of finance. A stem cell is like a supercell, and basically, it can become a heart cell or a brain cell or so forth. And regulation is a little difficult because more often than not regulators like buckets. So they don’t see stem cells, they see the heart cells and the brain cells, and then there’s regulatory agencies connected to that system.”
Check out the video above in order to learn all that he had to say.