Ripple vows to respond to "Paper Authority" attack amid token deletions (XRP)

With the value of the digital Ripple process (XRP) plummeting in the wake of a wave of removals from exchanges and trading suspensions, Ripple Labs issued a statement Tuesday, pledging to respond to allegations The U.S. Securities and Exchange Commission against the company.

The statement opened with the following message: The public and the press only heard the story from the SEC's side, and we will provide our response within a few weeks to address these unproven allegations against Ripple.

The statement claims that the SEC is using Ripple to bring down the entire digital currency industry in the United States, and that the company has sought for years to obtain regulatory clarification on digital assets To no avail.

Some observers believe that Coinbase's decision to suspend XRP in January may be a death knell for the digital asset as Ripple begins a multi-year lawsuit with the SEC.

Coinbase announced its plans to suspend XRP trading last Monday, a move that was not surprising given the expectations of the IPO.

XRP has been in free fall since the SEC filed a lawsuit against Ripple for allegedly violating securities laws. This has prompted many exchanges to delete XRP to avoid a regulatory backlash.

Ripple says the lawsuit has already affected countless innocent XRP token owners who have no connection to Ripple.

In the meantime, Ripple will continue to operate and support all of its products outside the United States. The statement clarified: The majority of our customers are not in the United States and the total XRP volume is traded to an extent. Large outside the US, as there are clear rules for XRP use in the UK, Japan, Switzerland, and Singapore, for example.

And as the Queen Telegraph previously reported, Brad Garlinghouse, chief executive of Ripple, believes his company will continue to succeed regardless of which method the SEC chooses to rate XRP This is because more than 90% of RippleNet users are from outside the country.

Few in the cryptocurrency space have defended Ripple against the SEC's allegations. The CoinCenter, a capital-based think tank and a pioneer in cryptocurrency adoption, says it is not prepared to say XRP is not a security.