Ripple Labs CEO says the US Securities and Exchange Commission (SEC) lawsuit against him and his company over XRP “went exceptionally well.” He stressed, “This case is important, not just for Ripple, it’s important for the entire crypto industry in the United States.”
Ripple CEO comments on SEC lawsuit over XRP
Ripple CEO Brad Garlinghouse discussed the SEC lawsuit over the sale of XRP during a fireside chat at the Paris Blockchain Week Summit on Thursday.
The U.S. Securities and Exchange Commission sued Ripple, Garlinghouse and co-founder Chris Larsen in December 2020 over the sale of XRP, which securities regulators say is an unregistered securities offering. Ripple has disputed the SEC’s findings, insisting that XRP is not a security.
The lawsuit has gone exceptionally well and much better than I had hoped when it began about 15 months ago.
However, he noted that “the wheels of justice are turning slowly”. In November last year, Garlinghouse said he expects the lawsuit to be finalized this year. “We’re seeing pretty good progress despite a slow court process,” he said at the time.
Earlier this week, a judge ruled that the SEC cannot edit the content of emails that allegedly reveal conflicts of interest over how the securities regulator has handled XRP and other crypto tokens, including ether (ETH).
Ripple is growing despite the ongoing lawsuit, Garlinghouse noted. “We have record growth,” he noted on Thursday. In January, he said Ripple’s valuation had risen to $15 billion and stressed that his company’s financial position was the strongest ever, despite the lawsuit over XRP.
Garlinghouse went on to explain during the fireside chat that if Ripple loses the lawsuit against the SEC, most tokens traded on cryptocurrency exchanges would similarly be considered securities and would need to register with the regulator. “These are costs, that’s friction,” exclaimed the manager, emphasizing:
If you designate XRP as Ripple’s security, we need to know each person who owns XRP… That’s a requirement of the SEC. You must know all of your shareholders. It is not possible.
“This case is important, not just for Ripple, it is important for the entire crypto industry in the United States,” the executive said, noting that much is at stake if the SEC successfully classifies XRP as a security. “It would be really negative for crypto in the United States.”
Do you think Ripple will win the lawsuit against the SEC and XRP will not be considered a security in the US? Let us know in the comment section below.
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