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MoneyGram Discards Ripple From Its Remittance Platform Due To SEC Lawsuit

The remittance company Moneygram announced that it stopped operating on the Ripple Labs platform, due to the lawsuit that the United States Securities and Exchange Commission (SEC) filed in December last year, accusing it of trading with its XRP cryptocurrency despite which is not registered as a security.

In its quarterly earnings report released this Monday, February 22, MoneyGram commented on its decision to suspend trading on the Ripple platform. due to the “uncertainty” generated by ongoing demand.

The partnership between MoneyGram and Ripple is on hiatus at least until the legal gap between Ripple Labs and the SEC is cleared up. Source: Davis Sanchez / pexels.com

MoneyGram has been using Ripple’s ODL (On Demand Liquidity) tool since mid-2019 as a means of moving money internationally. After both companies announced their partnership, the alliance produced a 155% increase in the market value of MoneyGram and an increase that reached USD 16.6 million in the sending of remittances between the United States and Mexico in the month of September of that year. anus.

In December of last year, when news of the case against Ripple broke, MoneyGram said it would continue to monitor the potential impact of the lawsuit and make a decision accordingly.

However, from the get-go, there were indications that the partnership between the two parties had been suspended indefinitely. Above all, because MoneyGram emphasized at the time that it was not using Ripple’s platform for direct transfers of funds from its consumers, digital or otherwise.

Ripple registers branch in crypto-friendly status

The lawsuit also prompted Ripple to hire high-profile legal experts to defend its business. These advocates include former SEC President Mary Jo White. She pointed out in a recent interview with Fortune that the Securities and Exchange Commission may have made a big mistake in filing a lawsuit against Ripple for the alleged sale of unregistered securities.

In any case, as the trial progresses, news emerges that Ripple registered a branch in Wyoming. The state is becoming known as a better address for the cryptocurrency industry to flourish, because its laws favor business.

Kraken and the financial group Avanti realize this because the State Banking Board granted them a license to operate with cryptocurrencies. For her part, Caitlin Long, founder and CEO of Avanti, noted on Twitter that more companies are realizing that Wyoming is a good address because its laws are favorable for the development of the industry. “People often ask how many have relocated / re-domiciled to Wyoming; we do not know. We don’t keep lists and we like it that way, ”he wrote.

Long also highlights that the state does not have corporate or franchise taxes and all cryptocurrencies are also exempt from sales tax. In addition, Cynthia Lummis, a Republican senator from the state of Wyoming and known for investing in bitcoin, was appointed a member of the Banking Committee of the US Senate. She has claimed that cryptocurrencies and digital assets will be a key part of the new legislative agenda.

So far it is not clear that Ripple will move its headquarters to the state of Wyoming, as its main office is still in San Francisco. However, as CriptoNoticias reviewed, its CEO Brad Garlinghouse has indicated that he is not satisfied with the lack of regulatory clarity on cryptocurrencies and blockchain that the United States currently has.