Ripple Expected To Spend Around $200 Million On SEC Lawsuit• May 8, 2023 1:54 pm • Comments
Ripple CEO Brad Garlinghouse just recently mentioned that the company will have spent around $200 million on the SEC lawsuit by the time it ends.
The company has never shared this detail with the public before and it is certainly a tremendous amount for any crypto company to spend on a lawsuit.
However, the fact that Ripple has the funds to do this and is staying strong in the fight against the SEC indicates that there is a very big chance that Ripple could win the case.
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The number being that big might be surprising for some given that many SEC officials have previously made statements that would contradict their claim that XRP is a security.
As a result, it would make more sense that the case would be concluded much quicker given that all the details point in Ripple’s favor.
— CNBC Middle East (@CNBCMiddleEast) May 8, 2023
Garlinghouse said Chairman Gary Gensler and other SEC officials have made statements in the past which contradict the regulator’s belief that XRP is a security.
“You have video footage of the chair of the SEC, as a professor at MIT, saying 75% of these digital assets are commodities,” he said. “And now he says they’re all securities because he’s the head of the SEC and he’s seeking power and he’s putting power ahead of sound policy to grow an economy in the United States.”
The SEC was not immediately available for comment when contacted by CNBC.
Ripple disputes the claim, saying the token should not be considered an investment contract and is used in its business to facilitate cross-border transactions between banks and other financial institutions.
If it was any other smaller crypto company that got accused by the SEC of the same thing, the company may have run out of funding before it could finish its lawsuit with the SEC.
In a sense, Ripple is one of the only few companies that could probably stand a chance against the SEC and therefore provide clarity to the entire crypto industry once the lawsuit concludes.
Ripple has proven to have an extremely strong balance sheet and has even expanded despite the prolonged crypto winter over the last year.
This was during a time when many crypto companies had to downsize or even go out of business due to market conditions.
Therefore, it is clear that Ripple will once again survive no matter what economic or regulatory hurdles stand in the way.
— CoinDesk (@CoinDesk) May 8, 2023
Ripple has spent $200 million defending the case brought against it by the United States Securities Exchange Commission (SEC), according to CEO Brad Garlinghouse.
Garlinghouse dropped the figure during a fireside chat at the Dubai Fintech Summit on May 8.
He stated that the U.S. is stuck compared with the regulatory progress of the United Arab Emirates virtual asset regulatory authority and the recent Markets in Crypto-Assets (MICA) bill in the European Union.
He went on to share that by the time the case is decided, Ripple will have spent $200 million defending itself against a lawsuit which, from its very beginning, doesn’t make a lot of sense.
— U.Today (@Utoday_en) May 8, 2023
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