Ripple is expecting a lawsuit from the SEC about XRP being sold as a security
Ripple Inc., one of the leading companies in the cryptocurrency space, has vowed to defend itself against a potential lawsuit from the U.S. Securities and Exchanges Commission (SEC) over claims that the company violated securities laws in the sale of its digital asset called XRP.
In a scathing attack on SEC Chairman Jay Clayton who will be stepping down at the end of the year despite his term expiring in June 2021, Ripple CEO Brad Garlinghouse said the SEC boss, “in his final act - is picking winners and trying to limit U.S. innovation in the crypto industry to BTC and ETH.”
The suit, which is yet to be filed, will name Garlinghouse and Ripple co-founder Chris Larsen as defendants.
Ripple “ready to fight and win”
Ripple challenges SEC’s theory that XRP is an investment contract, citing that it is “wrong on the facts, the law and equities.”The company argues that XRP is a currency similar to the top two leading digital assets - bitcoin and ethereum - which the regulator does not view as securities.
Ripple asserted that XRP is a better alternative to bitcoin and consistently ranks in the top three digital assets by market cap alongside BTC and ETH, which are controlled by China.
These remarks did not sit well with Ethereum co-founder Vitalik Buterin who pointed out that the Ripple/XRP team could be “sinking to new levels of strangeness.”
Looks like the Ripple/XRP team is sinking to new levels of strangeness. They're claiming that their shitcoin should not be called a security for *public policy reasons*, namely because Bitcoin and Ethereum are "Chinese-controlled". 😂😂https://t.co/ts02JqrTrB pic.twitter.com/mKwEzGIetk
— vitalik.eth (@VitalikButerin) December 22, 2020
Ripple further says that XRP, which does not satisfy the Howey Test, was considered a currency by the DOJ and the Financial Crimes Enforcement Network (FinCEN) in 2015.
“No foreign regulator has determined that XRP is a security. In fact, just the opposite is true. The U.S. would the unfortunate outlier,” wrote Ripple.
Ripple has the full support of its Japanese partner, SBI Holdings, a Tokyo-based financial services company. SBI CEO Yoshita Kitao pledged that the company “remains a steadfast partner to Ripple.”
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. https://t.co/MFRxLLAZdG
— 北尾吉孝 (@yoshitaka_kitao) December 22, 2020
Garlinghouse accused the SEC of being “out of step with G20 countries and the rest of the U.S. government.”
“Make no mistake, we are ready to fight and win - this battle is just beginning,” he tweeted.
The SEC - out of step with other G20 countries & the rest of the US govt - should not be able to cherry-pick what innovation looks like (especially when their decision directly benefits China). Make no mistake, we are ready to fight and win - this battle is just beginning. (3/3)
— Brad Garlinghouse (@bgarlinghouse) December 22, 2020
Ripple previously threatened to leave the U.S. due to a lack of regulatory clarity. Garlinghouse considered moving Ripple’s headquarters to London because the U.K.’s Financial Conduct Authority (FCA) does not see XRP as a security.
Continue reading by joining Cryptonary Pro
$997/year
Get everything you need to actively manage your portfolio and stay ahead. Ideal for investors seeking regular guidance and access to tools that help make informed decisions.
For your security, all orders are processed on a secured server.
As a Cryptonary Pro subscriber, you also get:
3X Value Guarantee - If cumulative documented upside does not reach 300% during your 12-month membership, you can request a full refund.
24/7 access to experts with 50+ years’ experience
All of our top token picks for 2025
On hand technical analysis on any token of your choice
Weekly livestreams & ask us anything with the team
Daily insights on Macro, Mechanics, and On-chain
Curated list of top upcoming airdrops (free money)
3X Value Guarantee
If cumulative documented upside does not reach 300% during your 12-month membership, you can request a full refund.
Our track record speaks for itself
With over 2.4M tokens and widespread misinformation in crypto, we cut through the noise and consistently find winning assets.
Our track record speaks for itself
With over 2.4M tokens and widespread misinformation in crypto, we cut
through the noise and consistently find winning assets.
Frequently Asked Questions
Can I trust Cryptonary's calls?
Yes. We've consistently identified winners across multiple cycles. Bitcoin under $1,000, Ethereum under $70, Solana under $10, WIF from $0.003 to $5, PopCat from $0.004 to $2, SPX blasting past $1.70, and our latest pick has already 200X'd since June 2025. Everything is timestamped and public record.
Do I need to be an experienced trader or investor to benefit?
No. When we founded Cryptonary in 2017 the market was new to everyone. We intentionally created content that was easy to understand and actionable. That foundational principle is the crux of Cryptonary. Taking complex ideas and opportunities and presenting them in a way a 10 year old could understand.
What makes Cryptonary different from free crypto content on YouTube or Twitter?
Signal vs noise. We filter out 99.9% of garbage projects, provide data backed analysis, and have a proven track record of finding winners. Not to mention since Cryptonary's inception in 2017 we have never taken investment, sponsorship or partnership. Compare this to pretty much everyone else, no track record, and a long list of partnerships that cloud judgements.
Why is there no trial or refund policy?
We share highly sensitive, time-critical research. Once it's out, it can't be "returned." That's why membership is annual only. Crypto success takes time and commitment. If someone is not willing to invest 12 months into their future, there is no place for them at Cryptonary.
Do I get direct access to the Cryptonary team?
Yes. You will have 24/7 to the team that bought you BTC at $1,000, ETH at $70, and SOL at $10. Through our community chats, live Q&As, and member only channels, you can ask questions and interact directly with the team. Our team has over 50 years of combined experience which you can tap into every single day.
How often is content updated?
Daily. We provide real-time updates, weekly reports, emergency alerts, and live Q&As when the markets move fast. In crypto, the market moves fast, in Cryptonary, we move faster.
How does the 3X Value Guarantee work?
We stand behind the value of our research. If the documented upside from our published research during your 12-month membership does not exceed three times (3X) the annual subscription cost, you can request a full refund. Historical context: In every completed market cycle since 2017, cumulative documented upside has exceeded 10X this threshold.
Recommended from Cryptonary
