(Reuters) – Ripple, the blockchain payment company associated with the XRP cryptocurrency, said on Tuesday that it would oppose a lawsuit against it by the Securities and Exchange Commission.
The XRP, the third largest cryptocurrency by market value, was originally created and sold by San Francisco-based Ripple.
Globally, financial regulators are still evaluating how to regulate the cryptocurrency industry and digital tokens such as Bitcoin and its rivals. These rules can determine whether cryptocurrencies make the leap from a niche to a regular asset.
"We are right and will aggressively fight – and win – this battle in the courts to get clear guidelines for the entire industry in the United States," Ripple CEO Brad Garlinghouse said in an email.
"Instead of providing "A clear regulatory framework for crypto in the United States, [SEC Chairman] Jay Clayton inexplicably decided to sue Ripple ̵
The SEC could not be reached immediately for comment.
The statement did not specify the type of complaint against Ripple, but a company representative said the SEC had informed Ripple that it planned to file the suit this week.
The Wall Street Journal and Fortune, which reported the news earlier and quoted from an interview with Mr. Garlinghouse, said the SEC would claim that Ripple violated investor protection laws when it sold XRP.
“The SEC is fundamentally wrong in terms of law and facts. XRP is a currency and does not need to be registered as an investment agreement, the company says.