During a recent CNBC interview, Brad Garlinghouse discussed the current legal dispute between Ripple and the US Securities and Exchange Commission (SEC) regarding the classification of XRP.
Garlinghouse underscored three consecutive victories for Ripple in the legal proceedings. He emphasized that the initial ruling on July 13 unambiguously declared XRP as not being a security. Additionally, he mentioned rejecting the court’s interlocutory appeal and the dismissal of allegations against both Ripple co-founder Chris Larsen and himself.
Ripple CEO Brad Garlinghouse Voices Criticism Against SEC’s Regulatory Approach.
In the interview, Garlinghouse criticized the SEC’s regulatory strategy of relying on enforcement and litigation patterns. He asserted that the SEC should reassess its actions, as they seem to be straying from their mission to safeguard investors.
Garlinghouse raised questions about the true beneficiaries of the SEC’s current approach and urged a shift in their regulatory tactics.
Regarding the pending approval of exchange-traded funds (ETFs), Garlinghouse acknowledged the potential influx of substantial capital with an approved ETF. However, he underscored the importance of regulatory clarity, utility, and scalable problem-solving for the industry’s prosperity. Expressing optimism for the industry’s future, Garlinghouse pointed to macro catalysts that he believes will drive it forward in the next five to ten years.
Pro-XRP Attorney Questions SEC’s Demand for $770 Million in Disgorgement.
In a separate development, pro-XRP attorney John Deaton weighed in on X (formerly Twitter), asserting that Ripple is unlikely to meet the SEC’s demand for a $770 million disgorgement.
Deaton argued that the SEC’s disgorgement claim related to XRP sales in various jurisdictions, including the UK, Japan, and Switzerland, is flawed. He emphasized that XRP is considered a non-security in those regions and is recognized as a legal exchange/utility token.
Questioning the SEC’s pursuit of disgorgement for sales in these jurisdictions, Deaton stressed that the court’s objective is not punitive, as this is not a fraud case.
Deaton further elaborated that the disgorgement amount would be substantially reduced when excluding non-US sales, sales to accredited investors, and considering the minimal harm caused by On-Demand Liquidity (ODL) transactions.
Highlighting a petition filed by 75,000 XRP holders claiming that the SEC, not Ripple, is causing harm, Deaton bolstered Ripple’s position.
The statements from Brad Garlinghouse and John Deaton underscore the ongoing legal dispute between Ripple and the SEC, focusing on XRP’s classification and critiquing the SEC’s regulatory approach.
The outcome of this high-profile case is poised to have significant ramifications for the broader cryptocurrency industry.
As of the current writing, XRP is trading at $0.660, demonstrating sideways movement and consolidating above a crucial level. Despite the lack of pronounced upward or downward shifts, the token has seen substantial gains amid the recent bullish reversal in the market, surging over 35% in the past 30 days and boasting a remarkable year-to-date growth of over 70%.