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The US Securities and Exchange Commission (SEC) intends to sue Ripple over its sale of XRP, according to fortune. After several years of uncertainty, reports are coming in that the SEC will finally move forward with  a lawsuit against the company over the alleged sale of unlicensed securities in the form of XRP tokens.

Confirming the reports, CEO of Ripple Brad Garlinghouse took to Twitter to criticise SEC chairman Jay Clayton. Accusing him of, in his final act of chairman, trying to limit US innovation in the crypto industry to BTC and ETH. 

The SEC has, in recent years, ruled that other cryptocurrencies like Bitcoin and Ethereum are not securities. In a Wells submission document posted on Ripple’s website, the company alleges that that Bitcoin and Ethereum are “two Chinese-controlled virtual currencies that the SEC has stated are not securities“.

Crypto Twitter had mixed reactions to the announcement. The CEO of SBI Group, Yoshitaka Kitao, came out in support of Ripple and XRP stating that:

“Japan’s FSA has already made it clear that XRP is not a security. I’m optimistic that Ripple will prevail in the final ruling in the US. SBI Holdings remains a steadfast partner to Ripple, and looks forward to expanding together in Asia.”

Justin Sun, founder of the TRON Foundation also expressed his support:

While on the other hand, critics like Ethereum co-founder Vitalik Buterin, mocked Ripple’s desperation. Binance CEO, CZ, quickly called Vitalik out for trying to divide the crypto industry.

XRP did not react well to the news, the price has dropped over 17% in the last 24 hours and is currently trading at $0.46.

Feature image by ThaiBitcoin from flickr

Andrew is a law student currently studying at UNISA, and Global Crypto's in-house reporter. Andrew discovered blockchain in his final year of school and since developed a keen interest in the subject. He appreciates a good cup of coffee. When he is not too busy with work or studies, he enjoys playing a good round of golf.