In its response to the SEC lawsuit filed by the SEC over cryptocurrency XRP, developer Ripple Labs claimed that the US regulator SEC, which exempted Bitcoin and Ether from regression, took steps by treating XRP as a security.
"The SEC does not have the right to regulate XRP because XRP is a virtual currency used in international and national transactions. It is not a security," the organization wrote to the court.
The SEC filed a lawsuit for Ripple's allegation of misleading investors in its $ 1 billion XRP supply. The lawsuit also alleged that the SEC's enforcement of regulations for Ether and Bitcoin for XRP would be overriding the legal mandate.