In a recent interview with CNBC, Brad Garlinghouse addressed the ongoing legal dispute between Ripple and the US Securities and Exchange Commission (SEC) regarding the classification of XRP.
Garlinghouse highlighted Ripple’s three consecutive victories in the legal proceedings, emphasizing that the first judgment on July 13 clearly stated that XRP is not a security. He also mentioned the rejection of the court’s appeal and the dismissal of charges against Ripple co-founder Chris Larsen and himself.
Ripple CEO Brad Garlinghouse criticizes the SEC’s regulatory approach
In an interview with Garlinghouse criticized the SEC’s approach to regulation through enforcement and pattern lawsuits, stating that the SEC must step back and realize that its actions are deviating from its mission of protecting investors.
Garlinghouse questioned who the SEC is actually protecting in this journey and called for a change in its regulatory approach.
Commenting regarding ETFs currently awaiting approval, Garlinghouse acknowledged that an approved ETF could bring significant capital to the market.
However, Brad emphasized that regulatory clarity, usability and scalable problem solving are crucial for the industry to thrive. Garlinghouse expressed his optimism about the industry’s future, citing the macro catalysts that will drive it forward over the next five to 10 years.
Pro-XRP Lawyer Challenges SEC’s $770 Million Exemption Request
In a separate development, XRP supporter lawyer John Deaton called X (formerly Twitter), stating that Ripple would not come close to paying the $770 million in compensation demanded by the SEC.
Deaton argued that the SEC’s claim of exemption in connection with the sale of XRP in the UK, Japan, Switzerland and other jurisdictions is incorrect. He emphasized that in these jurisdictions, XRP is not considered a security and is considered a legal exchange/utility token.
Deaton questioned the SEC’s attempt to stop sales made in these jurisdictions and emphasized that the Court’s goal is not to punish Ripple because it is not a fraud case.
Deaton further explained that the redemption amount would be significantly reduced after subtracting sales outside the US, sales to accredited investors and taking into account the minimal harm caused by ODL (on-demand liquidity) transactions.
Deaton emphasized that the petition filed by 75,000 XRP holders claimed that the SEC, not Ripple, was causing the harm, further strengthening Ripple’s position.
The comments by Brad Garlinghouse and John Deaton highlight the ongoing legal battle between Ripple and the SEC, with Ripple maintaining its position on XRP’s classification and criticizing the SEC’s regulatory approach.
The outcome of this high-profile case will likely have significant consequences for the entire cryptocurrency industry.
At the time of writing, XRP is currently trading at $0.660, showing sideways price movement and consolidating above this key level. Despite not having a significant move up or down, the token has seen significant gains amid the recent bullish market reversal.
Over the last 30 days, XRP has surged over 35% and has seen an impressive gain of over 70% since the beginning of the year.
Featured image from Shutterstock, chart from TradingView.com
