Although the US Securities and Exchange Commission has filed a lawsuit against Ripple over the sale of XRP, which is referred to as unregistered securities, Gatehub has offices in the UK and Slovenia but will not delist the cryptocurrency. According to the announcement made to XRP holders, the exchange announced that it will continue to support the fourth largest cryptocurrency until a clear decision on the lawsuit confirms that XRP is safe.
“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 accusing them of selling and profiting from XRP as unregistered securities. Soon after the lawsuit, the price of XRP fell 22%.
Ripple to relocate its headquarters to the UK
After the lawsuit, many top exchanges, including Coinbase and OKCoin, stopped trading the assets. However, Gatehub, which is built on the XRP Ledger Protocol and backed by investor Chris Larsen, assures XRP holders that the exchange will not follow in the footsteps of these other exchanges as 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 has taken no hasty action against Ripple and has petitioned the SEC. The petition requires the US government to recognize that XRP is a currency, not security as SEC claimed. Similarly, Brad Garlinghouse, CEO of Ripple, pledged to fight the US Securities and Exchange Commission to the end, firmly believing that XRP is worthy of recognition as a cryptocurrency. He has always regretted the lack of clear cryptocurrency regulations in the United States and announced that Ripple could move its headquarters to the UK.