Ripple CEO Says That Lawsuit Against SEC Has Gone ‘Exceedingly Well’

April 15, 2022 2:04 pm Comments

Ripple CEO Brad Garlinghouse has made public comments about the status of the SEC lawsuit and how he feels confident about the results as the end comes near.

The company has been engaged in a battle against the SEC for around 15 months now over the SEC’s allegations that XRP is considered a security.

The company has rebutted and has stated that XRP is classified as a virtual currency instead and is thus not subject to the regulations that are typically applied to securities like stocks.

Garlinghouse revealed that the progress in the lawsuit so far has exceeded his own expectations in terms of how well Ripple is faring against the SEC.

CNBC reports:

“The lawsuit has gone exceedingly well, and much better than I could have hoped when it began about 15 months ago,” Garlinghouse said at a CNBC-hosted fireside chat at the Paris Blockchain Week Summit Thursday. “But the wheels of justice move slowly.”

The SEC was not immediately available for comment when contacted by CNBC.

Earlier this week, a judge ruled the SEC cannot edit the contents of emails purporting to show there were conflicts of interest regarding how the watchdog dealt with XRP and other tokens, like ether.

Ripple is “already operating in the worst case scenario,” having sold “zero” enterprise contracts to financial institutions in the U.S last year. “We’re having record growth,” he said. “It’s just outside the United States.”

With that being said, Ripple has acknowledged that a lot is at stake here for not only Ripple, but also the rest of the crypto industry if Ripple loses.

Essentially, it might mean that the majority of tokens on exchanges could be considered securities as well if Ripple loses.

If that were to happen, innovation within the US would be stalled as it is quite impossible for companies like Ripple to have a record of every person who owns XRP.

And so far, it seems like the judges of the court are also aware of that fact and what is at stake here.

Despite all that risk, Ripple’s defense in the case so far and Garlinghouse’s overwhelming confidence about the case results reveals that he is extremely bullish in crypto overall.

PYMNTS reports:

According to Garlinghouse, there is quite a lot at stake with the case.

He said it was important “not just for Ripple; it’s important for the entire crypto industry in the United States,” and added that it would be “really negative” for crypto, making it so most tokens would be classed as securities.

In January, PYMNTS wrote that Ripple was confident the lawsuit would be over by April.

Jeremy Hogan, part of the Ripple community, said there’s not much chance of the suit getting extended beyond this month.

The report notes that Garlinghouse had said around that time that the judge seemed to realize the case “wasn’t solely about Ripple” and would have broader implications.

Garlinghouse is expecting the case to end with Ripple’s win, especially due to the latest developments where the SEC was ordered by the court to produce internal documents for review.

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