What happens if Ripple loses its SEC lawsuit? CEO Garlinghouse indicates solution

  • According to CEO Brad Garlinghouse, Ripple could move forward in the U.S. with an “alternative solution” to XRP if it loses its lawsuit against the SEC.
  • Since the lawsuit, Ripple has signed 20 new customers outside the US.

Just the day before yesterday, Ripple CEO Brad Garlinghouse was a guest on Bloomberg, talking about hopes for new talks with the U.S. Securities and Exchange Commission (SEC) once Gary Gensler takes over as chairman. Recently now, Garlinghouse was also invited by CNN’s Julia Chatterley, with the host focusing the interview on what happens if Ripple loses its legal battle against the SEC.

Garlinghouse expressed confidence that Ripple will win, but did not rule out the possibility that the court will disagree, saying, “I think we will prevail, but as you say there is a chance that the court system does not go this direction.” At the same time, Garlinghouse emphasized that Ripple continues to grow beyond the United States.

The good news for Ripple is that we continued to sign customers, we signed over 20 new financial institutions around the world since the SEC filed their lawsuit, and I think we will see the network grow very rapidly in non-US customers. The challenge is that it drives blockchain and crypto innovation outside the US which I think is not in the interest of the United States.

Chatterley probed, asking what Ripple would do with its U.S. operations in the event of a defeat, bringing up “alternative solutions” specifically for U.S. customers. Garlinghouse answered in the affirmative, explaining further:

That certainly could be part of the solution. […]. But we could do that. We always sought about our product as how to solve a customers problem first and foremost, and I think that served our growth, and it’s the reason we saw large activity, billions of dollars in transactions across RippleNet.

If nothing else, however, the Ripple CEO dismissed the danger of Ripple falling behind DeFi or global stablecoins as they serve other use cases. In addition, he said, Ripple has built a strong network of partners, including central banks around the world, who see Ripple’s solutions as “helpful.”

I think, here in the United States the industry has a risk of falling behind. But Ripple is solving a cross-border payments problem. We’re working with some and internally speaking to many central banks around the world about some of the stablecoins initiatives for central bank issued digital currencies, and we hear that it is actually helpful what Ripple is doing in solving a cross-border payments problem.

Garlinghouse shows no concerns about transparency

Moreover, Garlinghouse also commented on the current affairs within the SEC. He and Chris Larsen are currently being requested by the SEC to present their personal financial records. As CNF reported, the SEC is currently citing three pieces of evidence to prove that Ripple was aware of XRP’s “inequality” to Bitcoin and Ethereum, and yet “marketed” XRP as well as withheld documents from the public. Garlinghouse, however, expressed little concern about this:

I’m really looking forward to the facts coming out in the court case. This is something that I haven’t commented on publicly because the wheels of justice kind of move slowly, but I think that it is important that we get the facts out. We heard one side of the story from the SEC. In fact, I think as the facts come out what we’ll find is that Ripple and I have been more transparent than anyone else in the crypto industry.

About Author

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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