Ripple CEO Brad Garlinghouse recently discussed the ongoing appeal by the Securities and Exchange Commission (SEC) regarding a court decision by Judge Analisa Torres in an interview with Bloomberg’s Annabelle Droulers at the Singapore Token2049 conference.
Garlinghouse expressed his frustration with the SEC’s persistent efforts, stating, “Well, on one hand, it’s frustrating. You have a government with unlimited resources to keep fighting a fight that they already lost.” He also highlighted the significant financial toll the legal case has taken on Ripple, with the company spending “well over $100 million” in legal fees.
Despite the challenges, Garlinghouse remains optimistic about the outcome. He noted that the judge has already stated clearly that XRP is not a security. However, the SEC’s request for permission to appeal is focused on the nuanced aspect of whether there is an investment contract under certain circumstances. Garlinghouse believes that as the case progresses through the appellate court system, the chances of a favorable outcome for Ripple increase. He stated, “Because I think as you go up the appellate court system in the United States, you actually get more conservative, and I think this bodes well. And I said it a long time ago: The facts are on our side, the law is on our side. And we will continue to fight in court.”
When asked about the future of crypto companies in the US, Garlinghouse acknowledged that it is a tough spot. He emphasized the significance of the US in the global economy, accounting for 22% of global GDP. However, he anticipates potential shifts in the regulatory landscape with a new administration and believes that Congress will eventually be compelled to act.
Garlinghouse also pointed out the SEC’s recent losses in court, including a decision related to the Grayscale ETF conversion. He highlighted that the judges involved in these cases have used harsh language about the SEC, referring to their actions as arbitrary and capricious.
In addition to the legal battle, Garlinghouse revealed that over 80% of Ripple’s hiring this year will be outside the US. This decision is a consequence of the protracted legal dispute with the SEC. Garlinghouse praised jurisdictions like Singapore, Hong Kong, the UK, and Dubai for their proactive approach to crypto regulation, stating that these governments are partnering with the industry and providing clear rules, which has led to growth.
The SEC, under Chair Gary Gensler, has taken a stringent stance on cryptocurrencies, especially after market disruptions in 2022, such as the collapse of the FTX exchange. Gensler’s position is that most tokens are securities and should be under the SEC’s regulatory oversight. However, Congress’s efforts to provide clarity on the status of crypto have been slow.
At the time of writing, XRP was trading at $0.4779.
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