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Despite the U.S. Securities and Exchange Commission’s ongoing lawsuit against Ripple for selling XRP, which it refers to as an unregistered security, Gatehub, with offices in the UK and Slovenia, will not delist the cryptocurrency. According to an announcement to XRP holders, the exchange says it will continue to support the fourth-largest cryptocurrency until there is a clear verdict on the suit confirming XRP as a security.
“Please be advised that GateHub Ltd. will continue listing XRP until the SEC’s complaint against Ripple is adjudicated and a final decision entered that XRP is properly classified as a ‘security,’ or until we receive a cease and desist notice from the SEC.”
The SEC filed a lawsuit against Ripple and its executives Chris Larsen and Brad Garlinghouse for allegedly selling XRP as an unregistered security and making profit from it. Shortly after the lawsuit, XRP’s price dropped by 22%.
A number of top exchanges including Coinbase and OKCoin went ahead to halt trading of the asset following the lawsuit. However, Gatehub, which is built on the XRP Ledger protocol and backed by investor Chris Larsen, is assuring XRP holders that the exchange will not follow in the footsteps of these other exchanges because it is confident that XRP is not a security.
“We have never believed that XRP is a ‘security’ under the prevailing ‘Howey’ test in the US, and regard XRP primarily as a ‘utility’ token whose value is based on its use in payments and foreign exchange. Nor have we personally witnessed any improper market conduct by Ripple Labs or its senior officers.”
The XRP community is not taking the action against Ripple lightly and has launched a petition against the SEC. The petition is asking the US government to recognize XRP as a currency and not a security as the SEC alleges. In the same vein, Ripple CEO Brad Garlinghouse has vowed to fight the SEC until the end as he is confident that XRP deserves recognition as a cryptocurrency. He has always lamented the lack of clear regulation for cryptocurrency in the United States and announced that Ripple may be moving its headquarters to the UK.
Ponvang Bulus is a cryptocurrency enthusiast. He writes about cryptocurrency and blockchain technology. As a believer in the glorious future of blockchain, he is helping to spread the word and get the message out there for the world to embrace the future now.