By Shelly Melancon (Switzerland)
The long-drawn legal tussle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has no scheduled end.
The case has been dragging on, with each party determined to pursue it to its logical conclusion.
The CEO of Ripple has revealed what he thinks of the lawsuit between the regulator and his crypto company.
Ripple CEO Reveals Possible Impact of Losing the Lawsuit
Brad Garlinghouse, the CEO of Ripple, is concerned about the outcome of the lawsuit between his firm and the SEC. Garlinghouse noted that it is not just a mere court case that the exchange can afford to get over. The lawsuit has the potential to mar the future market performance of Ripple.
Garlinghouse, his co-founder, Chris Larsen, and the company Ripple Labs were sued in December 2020 by the SEC.
According to the charge sheet of the regulator, the sale of the XRP tokens is illegal as it is unregistered security.
However, Ripple claimed no wrong and has since found itself in a long-drawn court case with the SEC.
In a recent interview, the CEO was asked what his reaction would be if he failed to convince the court to rule in his favor. Responding to the question, the Ripple executive noted that in this case, Ripple is considered a security in the U.S. alone.
Also read:He added that the XRP token could not be traded on any crypto exchange in the United States. Garlinghouse cited Coinbase as an example. The exchange halted the token trading immediately after the SEC filed its charges against Ripple.
Meanwhile, the executive officer believes that if Ripple loses the case, it can only affect its status in America.
Garlinghouse Bets on Flooring SEC in Lawsuit
Garlinghouse is bullish on the chances of Ripple winning the case against the SEC. The CEO disclosed that he is betting Ripple will win the lawsuit against the financial watchdog because the facts are on their side.
The executive affirmed that he believes the SEC has overstepped its jurisdiction in overseeing the crypto space. According to him, the SEC just found a grey area and began alleging wrongdoing from exchanges.
Moreover, Garlinghouse opined that the legal battle that has taken this long is frustrating to him and other team members. Many crypto companies are backing Ripple Labs because they understand the importance of the case to the broader industry.
Ripple’s legal counsel, Stuart Alderoty, tweeted in April that a resolution to the case will likely happen in 2023. The victims, according to Alderoty, are U.S. citizens who were affected by a rug pull carried out by the SEC.
The regulator was heavily criticized for its approach to handling enforcement in the crypto industry.
It is worth noting that the XRP market capitalization, which stands at $15 billion, was destroyed the same day the SEC filed the suit. Alterity disclosed that it is ironic that the same people the SEC claimed to protect are the victims of its action.
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