Ripple’s David Schwartz Raises Red Flag, Hints At Possible Shutdown In The US
Ripple’s CTO, David Schwartz, recently made a statement suggesting that Ripple is contemplating shutting down its operations in the United States due to the ongoing legal battle with the SEC. This has caused concern in the crypto community, with some speculating about the implications of such a move.
The SEC filed a lawsuit against Ripple in December 2020, alleging that XRP, the cryptocurrency at the center of Ripple’s payment network, is unregistered security. Ripple has denied these allegations, and the legal battle has been ongoing ever since.
David Schwartz’s Comments
In a recent Twitter thread, David Schwartz, Ripple’s CTO, commented on the lawsuit and the potential implications for Ripple and the crypto industry. He stated that “we can’t succeed if the industry doesn’t succeed,” and that “a world where, say, Twitter is the only successful Internet company is unimaginable.”
However, he also expressed concern about the possibility of having to “walk through a door and slam it shut behind us.” While he hoped that Ripple wouldn’t have to make such a choice, he couldn’t promise that they wouldn’t.
The Community Reacts
Yassin Mobarak, the founder of Dizer Capital, expressed concern about Schwartz’s comments, asking whether Ripple would shut out retail XRP holders or the rest of the crypto space if they went through the door. Schwartz responded that he hoped they wouldn’t have to make such a choice and that Congress could change the laws.
Famous crypto lawyer and XRP advocate John Deaton also weighed in, stating that Ripple must do what’s best for Ripple and its shareholders, not necessarily what’s best for XRP holders or other businesses developing on the XRP Ledger.
Implications for Ripple and XRP
If Ripple were to shut down its operations in the US, it would likely have significant implications for both Ripple and XRP. However, it’s important to note that this is not a decision that Ripple has made at this time.
At press time, XRP was trading at $0.39, with modest gains of 2.3% on the day but still down 7.8% on its monthly chart. The legal battle between Ripple and the SEC is ongoing, and it remains to be seen what the ultimate outcome will be. However, Deaton has said that he has no doubt that Ripple will win against the SEC.