- Ripple’s battle against the Securities and Exchange Commission case has been successful so far, CEO Brad Garlinghouse said.
- The Securities and Exchange Commission claimed that Ripple staged an illicit securities offering via sales of XRP, the world’s 6th largest crypto asset.
- Ripple argues that XRP should be treated as a digital currency instead of a stock-like investment contract.
Garlinghouse Affirmative in SEC vs. XRP
Ripple CEO Brad Garlinghouse is optimistic about the organization’s success as its long-running legal battle with the SEC comes to an end.
The San-Francisco-based startup is battling the SEC over claims that Ripple, Brad Garlinghouse and Chris Larsen were involved in illicit securities offerings through sales of XRP, a crypto asset the organization both uses commercially and with which it is closely linked.
Ripple disputed the SEC’s findings, arguing that XRP should be treated as a digital asset instead of an investment contract like a stock.
Brad Garlinghouse told a news agency that the trial had gone remarkably well, and much better than he had hoped, since its launch. He added that the wheel of justice moves slowly.
Earlier this week, a judge ruled that the SEC could not alter the content of emails claiming to show there were conflicts of interest over how the watchdog handled XRP and repos tokens. such as Ether.
Hard times for Ripple
Ripple is already “working in the worst case”, unable to sell one of the corporate contracts to US banks last year. Brad said the organization’s growth is breaking records, that’s just outside of the United States.
Discovered in 2012, Ripple bills itself as a blockchain-based alternative to SWIFT, the international messaging system enabling billions of dollars in transactions every day. The organization sells its software to fintech companies and banks.
Ripple also uses XRP, 6th largest cryptocurrency by market capitalization, to facilitate cross-border payments. The organization owns most of the 100 billion XRP tokens circulating in the market, which it timely releases from the escrow account to keep the values stable.
Brad Garlinghouse said there was a lot to do to organize in case they lost the case.
He said that this case is vital, not only for Ripple but for the entire crypto industry spanning the United States, it would prove to be truly pessimistic.
In the event that this lawsuit escapes the hands of Ripple, the majority of the tokens would be considered securities, said Brad Garlinghouse, this means that all platforms where the token is registered must register with the SEC as brokers .
Brad Garlinghouse said that if you determine XRP as Ripple’s security, we need to know every individual who owns XRP. He added that this was an SEC requirement. You have to know each shareholder, which is impossible.