By
Steve Muchoki
April 24th, 2024
Ripple disputed the assertion stating XRP should be treated like a cryptocurrency and not a security offering.
Ripple CEO Brad Garlinghouse has expressed optimism about the firm’s prolonged legal battle with the SEC. While speaking at the Paris Blockchain Week Summit Thursday, Garlinghouse noted the case has gone better than he expected when the case started.
The SEC filed suit in 2020 against Ripple, Brad Garlinghouse and Christian Larsen, accusing the firm of offering illegal securities through the sale of XRP. Ripple disputed the assertion stating XRP should be treated like a cryptocurrency and not a security offering.
Earlier in January, the firm expressed optimism the case will be over by April. Developments in the case earlier in the week may have contributed to Garlinghouse’s confidence. Judge Sarah Netburn rejected the SEC’s appeal to embargo an email showing the SEC contradicting its position against XRP. The email details a speech by former-SEC Director, William Hinman stating that Bitcoin (BTC) and Ethereum (ETH) are not securities.
Leaving the document shows a contradiction in the way the SEC has treated Ripple compared to cryptocurrencies.
A Ripple Effect
While speaking at the CNBC-hosted fireside chat, the Ripple CEO argued that the outcome of the case could potentially influence the cryptocurrency landscape in the United States.
Should Ripple lose, the case would set a precedent for tokens to be considered as security offerings. The result would be that crypto platforms have to register as brokers. Consequently, these platforms will be required to know all their investors. “That’s cost, that’s friction. It’s not possible”
Contrarily, should Ripple win the case, the SEC will have to back down in its aggression against the crypto industry. Garlinghouse believes the payments firm will get a positive ruling. He, however, decried the slow pace of justice which has left the firm’s activities crippled in the United States.
In 2021, Ripple made no enterprise contact sales in the United States. Despite this, Garlinghouse pointed out that the company was experiencing tremendous growth. “It’s just outside the United Sates,” he concluded.
Established in 2012 as a blockchain-based payment solution, Ripple can facilitate transactions worth trillions of dollars daily. Despite the setback with the SEC case, Ripple has been selling its software to banks and fintech companies and expanding its market dominance outside the U.S.