Ripple denies fallout in Asia Pacific from SEC lawsuit

Blockchain payments firm Ripple has not experienced any fallout in its Asia Pacific business after being sued by the U.S. Securities and Exchange Commission (SEC), the company’s chief executive officer said on Friday.

In late December, the SEC charged Ripple, which is associated with cryptocurrency XRP, with conducting a $1.3 billion unregistered securities offering.

After that, the top U.S. cryptocurrency exchange Coinbase shut down trading in XRP, which is the world’s seventh-largest cryptocurrency by market value.

Financial regulators around the world are looking to decide how they should regulate the cryptocurrency industry.

The outcome of their assessments could determine whether cryptocurrencies will grow into mainstream assets or remain niche products.

Gary Gensler, President Joe Biden’s nominee to lead the SEC, promised during his congressional confirmation hearing to provide “guidance and clarity” to the cyptocurrency market.

While bitcoin is considered a commodity by U.S. financial regulators, most other cryptocurrencies have yet to be classified as commodities or securities.

Ripple has signed more than 15 new contracts with banks globally since the SEC brought its lawsuit, Garlinghouse said, adding that he believed the lack of clarity in the United States has been a “hindrance” to innovation.

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