Former SEC Chair to Represent Ripple in the Court

Ripple Labs hired Mary Jo White (2013 - 2017 Chairwoman at SEC) and Andrew Cerezni to protect Ripple in the court
05 June 2018   666

Ripple Labs hired representatives of the international law firm Debevoise & Plimpton Mary Jo White and Andrew Cerezni, entrusting them the right to defend their interests in a collective lawsuit filed against the company in May this year. This is reported by

Mary Jo White is known, among other things, to be the chairwoman of the US Securities and Exchange Commission (SEC) between 2013 and 2017.

In May, an XRP investor filed a lawsuit against Ripple, accusing the company of violating the federal securities law, as well as the laws of the state of California, when it launched a public sale of tokens.

The defendant is also the CEO of Ripple Brad Garlinghouse. According to the plaintiff, Ripple actually conducted an "endless ICO", which should be classified as the sale of securities under the provisions of the US Securities Act and the California Corporate Code.

The lawsuit itself is classified as collective, as it is filed on behalf of all investors who purchased the XRP token after January 1, 2013, that is, from the moment Ripple Labs was founded.

According to court documents, the case was transferred from a California state court to a federal court in the Northern District of California.

Like any civil proceeding, we'll assess the merit or lack of merit to the allegations at the appropriate time. Whether or not XRP is a security is for the SEC to decide. We continue to believe XRP should not be classified as a security.

Tom Channick

Head of corporate communication, Ripple

Meanwhile, a representative of Ripple said that at the time of filing the suit, the SEC did not determine whether the XRP token is a security.

Crypto Won't Replace Fiat, XRP CEO Says

But head of Ripple believes that cross-border payments are the sphere in which cryptocurrencies can be an ideal solution
05 September 2018   435

Ripple's CEO Brad Garlinghouse is convinced that the fiat currency will not lose relevance in the near future and called "senseless" the possible replacement of traditional currencies with digital assets. The future of crypto currency lies in cross-border transactions, Garlinghouse said in the Stanford Legal podcast. This is reported by CoinSpeaker.

I don’t think we’re going to be buying coffee at Starbucks with Bitcoin or XRP anytime soon. I think we’ve got to ask ourselves: What problem is that solving? You were talking about paying for the day spa bill and how you do that, but I think in some ways the friction – fiat currency, the US dollar in this case works pretty well, and so we need to make sure it’s better than that before we talk about it as a currency…

Brad Garlinghouse

CEO, Ripple

According to Garlinghouse, cryptocurrencies can be used in the st way in international payments and as a means of preserving value. This is especially true of crisis and weak economies, with a high level of inflation. He noted that the average annual inflation of the currencies of countries outside the G20 is about 6%.

There are economies where the fiat currency is at best a weak currency. And in those contexts, if I were a consumer experiencing hyperinflation – would you rather hold a cryptocurrency or your fiat currency? And in a lot of those cases, you’re seeing people take their dollars, or not dollars, pesos of various sorts, and saying, ‘I’d rather hold this because it’s a better asset to hold in terms of its potential appreciation and lack of inflation.

Brad Garlinghouse

CEO, Ripple

The head of Ripple stressed that cross-border payments are the sphere in which cryptocurrencies can be an ideal solution. He also noted the Ripple, which allows to conduct international transactions "almost in real time". This will help many companies save time and resources.

We had one of the largest banks in Australia, the CEO told me that 40% of all of their consumer wire transfers result in a customer service phone call. The frustrating thing for the bank is not only do they have to absorb the cost of taking a customer service phone call, they also deliver the news that they don’t know wait a couple more days it’ll probably be there.

Brad Garlinghouse

CEO, Ripple

Earlier, the Northern District Court of California rejected a class action lawsuit filed by investor Ryan Coffey against Ripple Labs Inc. on behalf of everyone who bought XRP tokens after January 1, 2013. The company was accused of illegally manipulating the price of XRP.