News Flash | SBI Group remains supportive of Ripple, stating that XRP is considered a cryptocurrency, not a security, in Japan.

Japan's SBI Group, which has a strong partnership with Ripple, continues to support Ripple despite the SEC's lawsuit against XRP for being a security. SBI Group President Yoshitaka Kitao reaffirmed the support for Ripple. On December 28, SBI Group released a statement stating their support for Ripple and asserting that XRP is considered a cryptocurrency asset in Japan and is not regulated under securities laws.

XRP Not Considered a Security in Japan

SBI has cited a publication by Nomura Research Institute stating that XRP is widely traded among exchanges in Japan and is considered a "cryptocurrency" regulated under the Funds Settlement Act, rather than a "security" regulated under the Financial Instruments and Exchange Act. This means that there is no need to apply to the Japanese Financial Services Agency for fundraising or sales. Therefore, despite the lawsuit filed by the SEC against Ripple, the compliance of XRP in Japan remains unaffected.

In the Nomura Research Institute article, it is ultimately attributed to the mess left by the outgoing administration, and there is hope for a change in the XRP case after the Biden administration takes office. Currently, the seventh-largest exchange in the world, Bitstamp, has announced that it will no longer allow U.S. users to trade XRP starting in January next year, but foreign users can continue to do so.

No Impact from XRP Price Drop

SBI Group further stated that the company does not directly invest in XRP but rather in Ripple. Its exchanges such as SBI VC Trade only maintain a certain amount of XRP based on providing trading services to customers. The drop in XRP price has no impact on the group.

Regarding the performance of SBI's stock price after the Ripple incident, it did indeed show an impact, dropping by over 8%:

Opposing View: SEC Will Not Back Down

Jake Chervinsky, legal counsel for Compound, stated that even with the departure of SEC Chairman Jay Clayton and the appointment of Elad Roisman, it will not affect the lawsuit against Ripple by the SEC.

He believes that even without the former chairman, other SEC commissioners will still vote in favor of enforcement. Moreover, focusing on the SEC chairman is a mistake as Jay Clayton was not among the plaintiffs in the Ripple case; it was other senior officials and teams. They are sure to continue with the case.