Ripple CEO Brad Garlinghouse believes that if the U.S. Securities and Exchange Commission (SEC) files an appeal, it would only strengthen Judge Torres’ decision that XRP is not a security.
Ripple CEO Brad Garlinghouse anticipates a lengthy process for the U.S. Securities and Exchange Commission (SEC) before they can appeal Judge Torres’ favorable ruling in the Ripple case.
On July 13, Judge Torres delivered a partial victory to Ripple Labs in the case brought by the Securities and Exchange Commission (SEC) in 2020. The ruling stated that the XRP token is not considered a security concerning retail sales on digital asset exchanges.
Judge Torres ruled that while XRP is not considered a security for retail sales on digital asset exchanges, it qualifies as a security when sold to institutional investors, meeting the conditions of the Howey Test.
Garlinghouse’s View on XRP Lawsuit
In a July 15 Bloomberg interview, Garlinghouse minimized the impact of the institutional sales decision, seeing it as a minor part of the lawsuit. He remained confident that if the SEC appeals the retail sales ruling, it would only strengthen Judge Torres’ decision.
Garlinghouse is optimistic about the current situation, stating that XRP is legally not considered a security based on the present law. He believes that any opportunity for the SEC to file an appeal would take years, implying a prolonged process before it could happen.
Garlinghouse on SEC’s Defeat in Crypto Case
Garlinghouse emphasized the SEC’s first-ever loss in a “crypto case,” indicating its importance. He criticized the SEC for going after “weak players” in the crypto industry who couldn’t put up a robust defense and labeled their approach as bullying.
During the initial filing of the case against Ripple, Garlinghouse pointed out that many U.S. crypto exchanges adopted a cautious approach of “waiting to see what happens” because of the prevailing uncertainty surrounding the regulatory implications.
Garlinghouse accused the SEC of intentionally causing confusion in the market by taking actions they knew would add to the uncertainty. He stated that the SEC was aware of the confusion and deliberately contributed to it.
We said in Dec 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US. More to come.
— Brad Garlinghouse (@bgarlinghouse) July 13, 2023
According to Garlinghouse, the SEC’s use of “confusion” as a strategy masks their exertion of power, but this approach has stifled innovation within the United States.
Garlinghouse Criticizes SEC’s Approach
Garlinghouse slammed the SEC’s focus on power and politics instead of sound policy and clear regulatory guidelines. He contended that this stance has hindered U.S. entrepreneurs and investors from participating in the crypto market and exploring blockchain technologies.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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