Ripple’s chief executive has shared his views on possible outcomes of the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) over the sale of xrp, which the regulator claims to be an unregistered securities offering.
Ripple’s CEO Discusses Implications of SEC Winning the Lawsuit
Brad Garlinghouse, Ripple’s CEO, spoke out about the U.S. Securities and Exchange Commission lawsuit against XRP in an interview with Axios during the Collision 2022 conference.
In December 2020, the SEC filed a lawsuit against Ripple Labs and Garlinghouse as well as Chris Larsen, co-founder, claiming that the XRP sales were unregistered securities offerings. Ripple disagreed and is now fighting with the Securities Regulator.
Garlinghouse was questioned during interview about what would happen if he didn’t receive a ruling. XRP has been deemed a security.
Quickly, Ripple’s executive stressed that XRP was only considered a security in those circumstances. He explained:
The SEC only has jurisdiction in the United States, and in some ways … How the world is operating right now is as if the case has been lost.
He stated that investors can’t trade XRP in America on any platform. Coinbase was one example. It stopped trading XRP in the United States shortly after Ripple’s lawsuit.
“If Ripple loses the case, does anything change? It’s basically just status quo. Ripple is still growing very, very quickly,” Garlinghouse said.
Garlinghouse Bets on Winning Against the SEC
He stated that Ripple would win against the regulator and he was betting:
I’m betting that because I think the facts are on our side. I’m betting that because the law is on our side.
“I think the SEC has massively overstepped and is trying to take kind of jurisdictional ownership over something that is … I think they saw this gray area they’re like ‘hey we are going to go in,’” the Ripple executive explained.
He added: “It’s frustrating it’s taking this long. There’s a lot of companies, I think, that realize how important this case is to the whole industry.”
In April, Stuart Alderoty, legal counsel at Ripple, tweeted: “It now looks like a resolution will come in 2023 — and each day that passes is hurting U.S. citizens who were essentially the victims of a rug pull by the SEC. $15B in XRP market cap was destroyed the day the suit was filed, hurting the very people the SEC purports to protect.”
Is it possible that SEC could win against Ripple in the lawsuit over XRP. Comment below to let us know your thoughts.
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