Ripple CEO calls XRP ruling a win for crypto industry
Ripple CEO Brad Garlinghouse has shared his sentiments about a recent ruling that XRP is not a security.
On July 13, Federal District judge Analisa Torres ruled that XRP, the native currency of the XRP Ledger (XRP), is not an unregistered security, except when used to raise funds from institutions.
Garlinghouse shed light on the outcome of the XRP ruling, emphasizing the positive impact on Ripple and the crypto industry.
You might also like: XRP is not a security, US judge rules
In a July 14 interview on Bloomberg TV, Garlinghouse highlighted the SEC’s previous lawsuits against himself, Ripple co-founder Chris Larson, and the company.
Hoping yesterday’s decision is the wake-up call that Congress needs. This ruling directly undercuts the SEC’s claims that nearly all tokens are inherently securities – likely to set a positive precedent for other digital tokens in the US. https://t.co/ZlSXbTigxK
Garlinghouse reminded that SEC brought three lawsuits: against him, Ripple’s co-founder Chris Larson, and Ripple itself. He stressed that the company mostly won the case against the company as the judge wrote that XRP is not a security.
While the ruling acknowledged that XRP could be considered a security in certain circumstances involving institutional sales, Garlinghouse emphasized that this aspect represents a small portion of their overall business.
Moreover, Garlinghouse criticized the SEC’s approach to the case, alleging confusion tactics and the creation of market uncertainty. He argued that the SEC’s actions have hindered the United States’ position in the global crypto community and hindered entrepreneurs and investors from participating in the market.
SEC is bully to crypto
The Ripple CEO acknowledged the overwhelming support from industry peers, who view Ripple’s legal victory as a significant moment as it was the first time the regulator had lost a crypto case.
Garlinghouse referred to the SEC’s approach as regulatory enforcement rather than building a market through clear rules, stating,
“I think the SEC has been a bully, and they’ve gone after weak players who couldn’t mount a proper defense. Ripple had the fortitude, the courage to kind of go in…”
Ripple CEO Brad Garlinghouse
However, he highlighted that recent developments have seen major U.S. exchanges, including Bitstamp, Gemini, Kraken, and Coinbase, either relisting XRP or expressing their intent to do so. He attributed this positive shift to the clarity the judge’s ruling provided.
You might also like: Crypto exchanges relist XRP amid Ripple’s partial victory in US
Addressing the potential legal process that may follow, Garlinghouse expressed confidence in the judge’s decision and downplayed the likelihood of an SEC appeal. He mentioned that an appeal would take years and could further reinforce Judge Analisa Torres’ ruling.
The ruling relieved Ripple and its supporters, signaling a potential turning point in the SEC’s treatment of cryptocurrencies. As the industry awaits further developments, the focus now turns to achieving regulatory certainty to foster a thriving and innovative market ecosystem.