Ripple still manages to win over banks in spite of the SEC lawsuit

Written by: Ali Raza
March 6, 2021
  • Ripple managed to secure 15 more contracts with banks since the SEC lawsuit in late 2020.
  • The company turned to Asian countries, where it was welcomed by Japan and Singapore.
  • Even the UK said that it doesn’t view XRP as a security, thus giving Ripple access to its market.

Over the years, Ripple has been accused of launching its coin, XRP, as an unregistered security time and time again. However, such accusations typically came from unsatisfied investors who felt cheated on, and Ripple — being a rapidly-growing firm — typically managed to shut them all down.

However, when the same accusation came from the US SEC in late 2020, the company started feeling massive consequences. Now, only a few months later, Ripple still keeps denying the accusations, and despite losing several influential partners when the SEC lawsuit first emerged, the firm managed to attract 15 new banks and partner with them.

Ripple and XRP found a new home outside of the US

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When the SEC first filed its lawsuit, XRP price crashed, and many influential partners, like MoneyGram, distanced themselves from Ripple and its tech. However, since then, Ripple managed to secure 15 new contracts with banking institutions around the world — at least, that is what its CEO, Brad Garlinghouse, said in a recent interview.

According to Garlinghouse, Ripple managed to expand to a number of Asian countries, where XRP found a much friendlier regulatory environment. Garlinghouse praised the greater regulatory clarity in the region, which allowed Ripple and XRP to find a new home in countries like Japan.

Japan’s FSA even clarified that it did not view XRP as a security after the SEC lawsuit, thus confirming for Ripple, local businesses, and investors in the region that they will not get in trouble for collaborating.

Even the Singapore and UK regulators also gave XRP a green light, thus providing Ripple with plenty of new markets outside of the SEC’s jurisdiction.

The coin itself is still available on exchanges around the world, even though a number of trading platforms delisted in following the lawsuit. But, despite the new markets that welcomed XRP and Ripple with open arms, the company is still trying to push against the SEC, claiming that the regulators in its home country are wrong to view XRP as a security.

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