Brad Garlinghouse, the CEO of Ripple Labs, has recently shared some updates regarding the company’s legal dispute with the U.S. Securities and Exchange Commission (SEC), which has been ongoing for some time now.
Garlinghouse has expressed his opinion that only U.S. regulators view XRP as a security. He stated that Ripple has been thriving in other parts of the world where the digital asset is not viewed as a security. The CEO said, “Ripple has shared it’s share of headwinds. I am extremely proud of where the company is today.” (Sic)
In his statement, Garlinghouse emphasized that Ripple has made significant efforts to maintain transparency throughout the ongoing SEC lawsuit, and the company has continued to grow and expand despite the challenges posed by the legal battle. He also said ‘there will not be one winner’ hinting that the win is important for other jurisdictions as well.
Garlinghouse added, “If the SEC had a real plan and had thought this through, they would actually have done the hard work to create a framework for crypto to trade as a security, in a more efficient way. The SEC is just trying to do a power grab and extend what the law says.”
Criticism has been leveled at SEC Chairman Gary Gensler for adopting an enforcement-focused approach to regulating the crypto industry. Many in the industry have complained about a lack of clear regulatory guidance from the SEC, which makes it challenging for companies operating in the crypto space to ensure compliance.
In December 2020, the SEC filed a lawsuit against Brad Garlinghouse, Ripple, and co-founder Chris Larsen, accusing them of conducting an ongoing digital asset security offering that raised over $1.3 billion without proper registration. While the lawsuit is ongoing, Ripple, Garlinghouse, and Larsen have consistently argued that XRP is not a security. The industry is currently waiting for a resolution, which may decide the fate of the industry.