David Schwartz, the chief technology officer at Ripple, the blockchain-based digital payment network and protocol, has hinted at the possibility that the fintech company might consider shutting its operations in the United States.
The controversial statement of the chief technology officer of Ripple came in a tweet, which was seemingly a response to the controversial tweet he previously made where he said, “I hope we don’t get into a position where we’re tempted to walk through a door and slam it shut behind us,” a statement which many interpreted as Ripple’s survival amid the ongoing crypto battle with the Securities and Exchange Commission (SEC).
In his latest tweet, Schwartz, while clarifying that it is not his preferred outcome, said, “I hope we don’t run into a situation where we have to make any choice like that,” adding “Keep in mind, while the stakes are high, they’re not quite as high as this suggests. After all, this is only the US. There’s quite a bit more to the world. And Congress can change the laws.”
While Schwartz’s latest tweet does not explicitly reveal anything and is more of a hypothetical situation, Dizer Capital founder Yassin Mobarak found Ripple CTO’s latest tweet “worrying,” since vague statements from Schwartz often hint at an upcoming event.
Mobarak recalled that the Ripple CTO vaguely suggested in the past that XRP holders should take profit before the Wells Notice from the SEC was sent to the company and was made public.
“This tweet from @JoelKatz is kind of worrying me a bit. Who goes through the door? & who is shut out? 1. Ripple goes through the door and retail XRP holders are shut out. 2. Ripple & XRP go through the door and the rest of the crypto space is shut out. Is it 1 or 2,” Mobarak tweeted.
Aside from his latest tweet, Schwartz’s latest cover photo on his Twitter account further fuels embers of speculations about Ripple shutting its operations in the United States.
“When a scrappy financial startup takes on a web of corruption and betrayal to bring instant payments to the masses, they learn that the cost of disrupting the status quo is higher than they could ever have imagined, forcing them to decide between their vision and their survival,” the text in the newly-posted cover photo read.
The SEC slapped Ripple with a lawsuit in 2020, alleging that the company sold XRP as an unregistered security for years.
The case is now in federal court and Ripple’s decision to settle or leave the decision to the court will have a sweeping impact on the future of cryptocurrency in the U.S.
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