The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP “has gone exceedingly well.” He stressed: “This case is important, not just for Ripple, it’s important for the entire crypto industry in the United States.”
Ripple’s CEO Comments on SEC Lawsuit Over XRP
Brad Garlinghouse from Ripple discussed the SEC lawsuit regarding the sale of XRP at a fireside talk Thursday at Paris Blockchain Week Summit.
In December 2020 the U.S Securities and Exchange Commission sued Ripple and Garlinghouse as well as Chris Larsen their co-founder over the sale XRP. This was a unregistered securities offering, according to the Securities Watchdog. Ripple has disputed the SEC’s findings, insisting that XRP is not a security.
Garlinghouse sharing:
It has been a wonderful experience, far better than what I had hoped for when the lawsuit began 15 months ago.
However, he noted that “the wheels of justice move slowly.” In November last year, Garlinghouse said he expects the lawsuit to conclude this year. “We’re seeing pretty good progress despite a slow-moving judicial process,” he said at the time.
An earlier this week judge ruled that emails purporting conflicts of interest about how the Securities Regulator dealt with XRP, other crypto tokens and ether (ETH) cannot be edited by the SEC.
Garlinghouse stated that Ripple has been growing even though there is an ongoing lawsuit. “We’re having record growth,” he remarked Thursday. In January, he said that Ripple’s valuation has risen to $15 billion, emphasizing that his company’s financial position is the strongest ever despite the lawsuit over XRP.
Garlinghouse explained that, if Ripple wins the suit against the SEC all token trading on cryptocurrency exchanges will be considered securities. They must register with regulators. “That’s cost, that’s friction,” the executive exclaimed, stressing:
If you determine XRP as a security of Ripple, we have to know every person that owns XRP … That’s an SEC requirement. It is necessary to have all your shareholders. It’s not possible.
“This case is important, not just for Ripple, it’s important for the entire crypto industry in the United States,” the executive opined, noting that there is a lot at stake if the SEC successfully classifies XRP as a security. “It would really be negative for crypto in the United States.”
Are you sure Ripple and XRP won’t be considered a security here? Leave your comments below.
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