Ripple CEO Brad Garlinghouse made comments on the never-ending Ripple-SEC lawsuit that since 2020 has been looking into whether XRP is an unregistered security, and he discussed possible outcomes.
Ripple-SEC lawsuit: Garlinghouse comments on possible outcomes
During an interview with Axios at the Collision 2022 event, Brad Garlinghouse, CEO of Ripple, discussed and commented on the possible outcomes of the Ripple-SEC endless lawsuit.
The US Securities and Exchange Commission (SEC) has been accusing Ripple Labs, Garlinghouse and co-founder, Chris Larsen, of selling XRP as if it were an unregistered securities offering since 2020. Ripple, on the other hand, is trying to argue that XRP is not a security.
This gray area of “defining” XRP as a security or not may soon come to a verdict, with consequences. In this regard, Garlinghouse made his comments on the possible outcomes.
What would happen if the SEC wins the case against XRP
Should the SEC win, Ripple’s CEO pointed out that in that case XRP would be considered a security only in the United States. In this regard, Garlinghouse said:
“The SEC only has jurisdiction in the United States, and in some ways … How the world is operating right now is as if the case has been lost. If Ripple loses the case, does anything change? It’s basically just status quo. Ripple is still growing very, very quickly”.
Not only that, Garlinghouse says investors in the US cannot trade XRP on all platforms as with other assets.
Indeed, in early 2021, Coinbase itself had officially delisted Ripple (XRP) from its exchange, precisely because of the SEC’s allegation, leaving its holders and traders, desperate for information, high and dry.
Garlinghouse’s bet on Ripple’s victory against the SEC.
Of course, Garlinghouse has not wasted any time claiming that the above scenario is a potential outcome, stating that his bet is on Ripple winning and not losing against the SEC.
In this regard, Garlinghouse said:
“I’m betting that because I think the facts are on our side. I’m betting that because the law is on our side. I think the SEC has massively overstepped and is trying to take kind of jurisdictional ownership over something that is… I think they saw this gray area they’re like ‘hey we are going to go in. It’s frustrating it’s taking this long. There’s a lot of companies, I think, that realize how important this case is to the whole industry”.
Recently, Ripple was cited by Santiment for reaching a new record of 247,000 unique addresses interacting on the XRP network in just four hours, something not seen since February 2020.