Ripple faced another trial, which stated that the company had violated the securities laws of the United States, as XRP is the equivalent securities.
The lawsuit claims that XRP is a valuable paper, was filed June 27 in the Supreme court of California on behalf of David Oconer and “persons”. As the defendant called Ripple Labs, XRP II and CEO brad Garlinghouse.
It already the third claim to Ripple in just the last two months.
In the lawsuit Ripple is also accused of attempting to try to increase the market value of XRP, by placing 55 billion in escrow service on the special account.
Ripple and CEO brad Garlinghouse categorically denied allegations that XRP is the equivalent securities.
At the conference “Future of Fintech” conference, held in new York, Garlinghouse cited three reasons why he believes that XRP is not securities:
If Ripple, as a company, tomorrow will cease to exist, then the registry XRP continues its work. It is an open, decentralized technology that doesn’t depend on Ripple.
People buying XRP, don’t you think that you are buying the stock Ripple. There is a company called Ripple. We are a private company. We have investors. People buy shares in the company Ripple. But buying XRP does not give you ownership rights to Ripple. It does not give you the right to dividends or profits Ripple.
XRP solves a specific problem. There is no need for XRP to be a valuable paper.
In addition, Garlinghouse said:
I don’t think the fact that we own XRP gives us control over it. Saudi Arabia owns a lot of oil, but nevertheless, it does not give them control over the oil.