Ripple CEO, Brad Garlinghouse, voices his opinion at the Ripple Swell event in Dubai, accusing the SEC of losing sight of their mission to protect investors. A U.S. judge’s recent ruling deemed XRP was not a security, marking a pivotal victory for Ripple. The company continues to pursue the next steps in the case, hoping that Congress will eventually be responsible for introducing federal laws governing digital currencies.
Garlinghouse was quoted saying, “I think the SEC, in my opinion, has lost sight of their mission to protect investors. And the question is, who are they protecting in this journey?” following their recent accusations of conducting a securities fraud. This has been seen as a gamechanger for both Ripple and the crypto industry. Ripple sees itself as a payments company that uses RippleNet to send cross-border money transfers through the blockchain, whilst leveraging XRP, a cryptocurrency, to conduct these cross-border payments.
At the same time, the Judge ruled in Ripple’s favor stating that XRP is not a security, while the SEC’s request for an interlocutory appeal was denied. Following this, the SEC dropped its securities law violation charges against Garlinghouse and Ripple executive Chris Larsen. With the SEC now having 90 days to conduct remedies-related discovery, it’s clear to Ripple that they are moving in a positive direction. The Chief Executive Officer looks to the United States for the thawing of the permafrost, hoping to see a thriving industry in the largest economy in the world.
Moreover, Garlinghouse expressed hope for a point in time when federal laws will govern digital currencies rather than continued regulation through litigation. He sees this development as a critical breakthrough and a testament to the industry’s potential. Consequently, Grayscale secured an important victory, and the CEO concluded with a strong message that the approach of regulation through enforcement needs to change. Ripple continues to challenge the SEC’s case, maintaining that XRP shouldn’t be considered a security and is more akin to a currency or commodity. This legal battle demonstrates that Ripple is prepared to go to great lengths to defend its commercial position.
