The lawsuit has dragged on, with each party keen to see it through to its logical conclusion.
The CEO of Ripple has spoken out on the lawsuit between both the government and his cryptocurrency startup.
The CEO of Ripple discusses the potential consequences of losing the lawsuit.
Ripple CEO Brad Garlinghouse is anxious about the outcome of his company’s case against the SEC. Garlinghouse pointed out that the exchange cannot afford to end with a simple court case. The case has the potential to be dangerous Ripple’s future market performance.
The SEC sued Garlinghouse, his co-founder Chris Larsen, and their company Ripple Labs in December 2020.
According to the regulator’s charge sheet, the selling of XRP tokens is prohibited because it is an unregistered security.
However, Ripple claimed no wrongdoing and has since been embroiled in a protracted legal battle with the SEC.
In a recent interview, the CEO was asked what he would do if he could not persuade the court to find in his favor. In response to the query, the Ripple executive stated that Ripple is only regarded a security in the United States.
He went on to say that the XRP token could not be traded on any cryptocurrency exchange in the United States. Coinbase was used as an example by Garlinghouse. The exchange promptly ceased token trade once the SEC filed its allegations against Ripple.
Meanwhile, the executive officer believes that if Ripple loses the case, it will only harm its reputation in the United States.
Garlinghouse Bets on Defeating the SEC in Lawsuit
Garlinghouse believes Ripple will prevail in its fight against the SEC. The CEO stated that he believes Ripple will prevail in its action against the financial services authority since the facts are on their side.
The executive reiterated his belief that the SEC had repeatedly violated its authority in supervising the crypto market. According to him, the SEC just discovered a grey area and began accusing exchanges of misconduct.
Furthermore, Garlinghouse stated that the lengthy legal struggle is frustrating to him and other team members. Many crypto companies are backing Ripple Labs because they see the case’s significance to the global industry.
Stuart Alderoty, Ripple’s legal representative, tweeted in April that the matter would most likely be resolved in 2023. According to Alderoty, the victims include US residents who were victimized by the SEC’s rug pull.
The agency was widely chastised for its attitude to cryptocurrency regulations.
It is important to remember that the $15 billion XRP stock market was eliminated on the same day the SEC filed the claim. Alterity stated that it is ironic that the people the SEC pledged to protect are the ones who are the casualties of its activity.