Ripple CEO Brad Garlinghouse optimistic: SEC will have to wait before filing an appeal against Ripple Labs

Ripple CEO Brad Garlinghouse optimistic: SEC will have to wait before filing an appeal against Ripple Labs

Ripple boss Brad Garlinghouse is confident that the US Securities and Exchange Commission (SEC) will have to wait some time before it can appeal the latest ruling in the legal dispute with Ripple Labs. On July 13, US Judge Analisa Torres ruled in favor of the defendants, finding that the sale of Ripple's cryptocurrency XRP to private investors did not constitute a security and therefore did not constitute an unlawful sale of securities.

However, Torres added that the sale of XRP to institutional investors would be considered a sale of securities because it meets the legal criteria of the so-called Howey test. Brad Garlinghouse commented on this in an interview with Bloomberg on July 15, stating that the decision to sell to institutional investors was negligible. Much more important is the decision regarding the sale to private investors, which is known to have been in Ripple Labs' favor.

Garlinghouse believes it will be some time before the SEC even has the opportunity to appeal the ruling. As long as this does not happen, Judge Torres' decision stands and Ripple Labs is optimistic. The Ripple boss also emphasizes that this is the first major crypto case that the US Securities and Exchange Commission has lost. He sharply criticizes the authority and accuses it of behaving like a tyrant towards the crypto industry. In particular, it takes action against crypto companies that cannot afford adequate defense.

Additionally, Garlinghouse recalls that the SEC's filing of the lawsuit alone at the end of 2020 led to most crypto exchanges delisting XRP due to the uncertainty, including major platforms such as Coinbase and Kraken. The Ripple boss accuses the SEC of deliberately causing confusion, even though it was aware of the legal situation. This ultimately came at the expense of the USA's ability to innovate and the participation of entrepreneurs, investors and investors in the crypto market and the blockchain industry.

In a tweet, Garlinghouse explains that Ripple Labs had already emphasized in December 2020 that they were on the right side of the law and would also be on the right side of history. He thanks everyone who helped make the decision in favor of crypto innovation in the US and promises there is more to come. Finally, Garlinghouse concludes that the SEC has attempted to prioritize power and politics over meaningful regulation and clear guidelines, which has made it unnecessarily difficult for entrepreneurs, investors and depositors to participate in the crypto market and blockchain industry.