- Ripple’s CEO has unveiled a bold strategy against the SEC.
- Three consecutive victories over the SEC have marked a pivotal moment for Ripple.
- The unfolding legal saga has questioned the SEC’s approach, with potential industry implications.
Ripple’s top honcho, Brad Garlinghouse, spilled the beans on the company’s countermove against the U.S. Securities and Exchange Commission (SEC) in an ongoing legal tussle. Both parties have concurred on a briefing timeline for addressing Section 5 violations linked to Ripple’s institutional sales of XRP. Ripple is gearing up to contest the SEC’s $770 million disgorgement assertion.
Facing the ‘Insanity’ of SEC Rulings Head-On
In a conversation with CNBC on November 10, Garlinghouse expressed heightened confidence following three consecutive wins against the SEC. Firstly, Judge Torres’ July 13 ruling definitively clarified that XRP does not qualify as a security. This ruling allowed cryptocurrency exchanges to relist XRP.
Secondly, Judge Torres rejected the SEC’s plea for an interlocutory appeal. Lastly, the SEC dropped charges against Ripple executives Brad Garlinghouse and Chris Larsen with prejudice, a move Garlinghouse dubbed as ‘insanity.’
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In his critique, Garlinghouse likened the SEC to a broken record, repeating futile strategies. He parallels Grayscale’s triumph in the U.S. over a Bitcoin ETF, where a federal judge rebuked the SEC as arbitrary and capricious.
Ripple CEO Anticipates Winning Turn in Legal Battle
Discussing the upcoming steps in the legal battle, Garlinghouse asserted that the SEC has veered off course from its investor protection mission. Ripple eagerly anticipates the judge’s decisions on remedies, focusing on identifying harmed investors and scrutinizing securities laws for institutional investors.
Garlinghouse views this as a positive turn for the entire industry, anticipating robust prospects in the U.S. market. He debunked the notion that the Sam Bankman-Fried case should be a blanket blame for the industry, even taking a swipe at SEC Chair Gary Gensler’s rendezvous with Sam Bankman-Fried.
On the Flipside
- While Ripple celebrates victories, it’s essential to note that the SEC’s pursuit of regulatory clarity has prompted necessary actions in the crypto space.
- The denial of an interlocutory appeal by Judge Torres may be viewed as a missed opportunity to expedite the legal process.
- Brad Garlinghouse’s criticism of the SEC’s approach as ‘insanity’ might be countered by those who believe that a robust regulatory stance is necessary to prevent potential market abuses.
Why This Matters
The outcomes not only stand to redefine the regulatory stance on XRP but could potentially set precedents affecting how cryptocurrencies are classified and traded. This case, marked by recent victories for Ripple, has implications that ripple through the broader crypto market, influencing investor sentiment and regulatory attitudes.
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To learn more about the potential watershed moment for XRP signaled by Ripple’s IPO, delve into the details here:
How a Ripple IPO Could Signal a Watershed Moment for XRP
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