The chief executive of Ripple has provided his opinions on potential outcomes of the case filed by the U.S. Securities and Exchange Commission (SEC) over the sale of xrp, which the regulator alleges to be an unregistered securities offering, in response to the complaint.
CEO of Ripple Talks About Consequences of SEC Winning the Lawsuit
In an interview with Axios at the Collision 2022 conference, Ripple CEO Brad Garlinghouse highlighted the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) over XRP earlier this month.
In December 2020, the SEC filed a lawsuit against Ripple Labs, Garlinghouse, and co-founder Chris Larsen, saying that the sale of XRP was an unregistered securities offering.
The SEC and Ripple are engaged in a legal dispute as a result of Ripple’s disagreement with the securities regulator.
What would happen if Garlinghouse does not succeed in getting a decision in his favor and XRP is recognized as a security? was brought up during the interview.
The Ripple CEO highlighted that XRP would only be regarded as a security in the United States in such scenario. 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.
In the United States, most platforms do not allow investors to trade XRP, he noted. For instance, shortly after the SEC launched its case against Ripple, Coinbase stopped trading in XRP.
“What happens if Ripple loses the case? Basically, nothing has changed. Ripple is still expanding really fast, according to Garlinghouse.
Garlinghouse is placing a wager on defeating the SEC
The executive reiterated his belief that Ripple will prevail in its legal dispute with the securities regulator, saying:
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 believe the SEC has greatly overstepped its boundaries and is attempting to claim control over something that is… The Ripple executive remarked, “I believe they noticed this gray area and decided to enter it.
It’s annoying that it’s taking this long, he continued. I believe that many businesses are aware of how crucial this case is to the sector as a whole.
“It now appears like a resolution will come in 2023 — and each day that goes is affecting U.S. individuals who were effectively the victims of a rug pull by the SEC,” tweeted Stuart Alderoty, legal counsel at Ripple, in April. The day the lawsuit was filed, $15 billion in XRP market cap was lost, affecting the exact individuals the SEC is supposed to defend.
