Ripple has filed an official response to the lawsuit it is facing from the US Securities and Exchange Commission (SEC).

demanded Ripple has issued documents explaining why Bitcoin and Ethereum are not considered securities.

Ripple responds and asks about Bitcoin and Ethereum:

Ripple submitted a 93-page response yesterday, Friday, January 29, in the “Manhattan” court in the United States of America.

The company’s official response comes after the commission filed a lawsuit against it and two of its managers, claiming that they sold unauthorized securities through a sale of the cryptocurrency XRP.

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Ripple argues that the body has previously failed to substantiate the claim that XRP is a security or investment contract under US federal law.

Ripple confirms that XRP is not a security and denies that its XRP sales are worth billions of dollars in investment contracts.

In its defense, Ripple also cited a lack of due process and fair notice, saying:

The SEC should have made such allegations in 2015 when Ripple settled with the Financial Crimes Enforcement Network (FinCEN).

Ripple reports that the settlement with FinCEN describes XRP as a convertible digital currency.

The letter and response from Ripple also stated that XRP should be considered a digital currency in the same way that the Securities and Exchange Commission considers Bitcoin and Ethereum.

Quoted from the reply:

The SEC filing, based on legal theory is exaggerated.

The possible question is why the SEC exempted Bitcoin and Ethereum from similar regulation.

Ripple’s request from the Securities and Exchange Commission states that the status of Bitcoin and Ethereum be clarified in an effort to portray the lawsuit as unfair and arbitrary.

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Ripple appears to be focusing on the SEC’s conclusion in 2018 that Ethereum is not a security.

Despite the fact that Ethereum was launched through an Initial Offer (ICO) which gave external buyers an opportunity to purchase the project early in its official public release date.

Today, such an ICO would be considered an illegal offer of securities according to SEC standards.

The Securities and Exchange Commission did not provide an immediate response to indicate whether or not it would comply with Ripple’s request.

The legal struggle between Ripple and the SEC continues:

With Bitcoin still dominating the headlines, the ongoing battle between the SEC and Ripple continues to rage.

As a reminder, the Securities and Exchange Commission has filed a lawsuit alleging that Ripple raised more than $1.3 billion by offering unregistered securities.

The Securities and Exchange Commission defines XRP as a security token and this means that the digital currency will be subject to federal laws that govern offerings on US stock exchanges.

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But Brad Garlinghouse, CEO of Ripple, asserts that XRP is not a security token because a cryptocurrency is different from an investment contract.

Garlinghouse hints that the SEC’s lawsuit came under political influence, knowing that the matter has not yet been formally settled in court.

According to Garlinghouse, the ongoing battle between Ripple and the SEC will have broader implications for the cryptocurrency markets as it is an attack on cryptocurrencies in general.

What happens to Ripple is likely to affect other cryptocurrencies in the future.

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