- Ripple’s legal defense against the SEC has cost the company over $100 million to date.
- CEO Brad Garlinghouse remains optimistic about the case’s outcome, citing the judge’s remarks that XRP is not a security.
Ripple Faces the Regulator: Insights from the Frontline
Ripple, the blockchain heavyweight, has found itself entrenched in a courtroom tussle with the United States Securities and Exchange Commission (SEC). As the industry keenly watches each development, Brad Garlinghouse, Ripple’s CEO, candidly shared his thoughts on the implications of this legal entanglement and the possible direction it might take.
While speaking to Bloomberg’s Annabelle Droulers on the fringes of the premier crypto summit, TOKEN2029, Garlinghouse expressed optimism, though not without highlighting the financial burden this case has levied on his company. With the meter running over $100 million in legal expenses, one might wonder about the toll it takes on a company to grapple with a regulatory behemoth like the SEC, especially when the latter seemingly possesses an endless reservoir of resources.
Garlinghouse’s assertions give a glimpse into the complexities of the legal dispute. He quoted a judge’s statement which underscored that XRP, often the center of this dispute, is not categorized as a security. This standpoint fortifies Ripple’s defense.
SEC’s Next Moves and Ripple’s Strategic Shift
Navigating the labyrinth of regulatory structures, Ripple‘s top executive illuminated recent SEC actions, like the filing for a reply memorandum supporting its motion for an interlocutory appeal. Elucidating further, Garlinghouse said this move doesn’t necessarily address XRP’s classification as a security. Instead, it delves deeper, probing the nuanced circumstances of transactions that might qualify as investment contracts.
The Ripple CEO voiced confidence in the US appellate court system, believing its inherent conservatism would favor Ripple’s case. With a conviction that both facts and law are solidly in Ripple’s corner, Garlinghouse expressed hope for a triumphant outcome in court.
Yet, the cloud of regulatory uncertainties in the US is compelling Ripple to cast its net elsewhere. Charting its future growth strategy, the company aims to execute over 80% of its hiring in crypto-friendly jurisdictions outside the US, such as Singapore, Hong Kong, Dubai, and the UK. Garlinghouse praised these regions for their progressive stance and synergistic collaborations between governments and the crypto industry.
In the backdrop of this legal skirmish, the XRP token showcased resilience. As of September 19, it recorded a modest climb, trading at $0.505, marking a 2.45% uptick for the day and 6.47% over the week, despite a slight dip in the monthly metrics.
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