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Ripple’s chief executive has shared his views on possible outcomes of the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) over the sale of xrp, which the regulator claims to be an unregistered securities offering.
What Will Happen if SEC Wins the Lawsuit?
Ripple CEO Brad Garlinghouse discussed the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) over XRP earlier this month in an interview with Axios at the Collision 2022 event.
The SEC sued Ripple Labs, Garlinghouse, and co-founder Chris Larsen in December 2020, alleging that the XRP sale was an unregistered securities offering. Ripple denied this, Ripple has been fighting legal battles ever since to clear itself.
During the interview, Garlinghouse was asked what would happen if he does not get a ruling in his favor and XRP is deemed a security.
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He emphasized that in such a case, XRP would only be accepted as a security in the United States. This means that even if they lose the case, XRP will only be traded as a security in the United States. He clarified:
The SEC only has jurisdiction in the United States, and in some ways … How the world is operating right now is as if the case has been lost.
“If Ripple loses the case, does anything change? It’s basically just status quo. Ripple is still growing very, very quickly,” Garlinghouse said.
He added that investors cannot trade XRP in the U.S. on most platforms. Coinbase, for example, halted trading of XRP soon after the SEC filed the lawsuit against Ripple.
Garlinghouse Is Betting on Winning Against SEC
The manager stated that he believes Ripple will win the case against the SEC, he can even bet on it :
I’m betting that because I think the facts are on our side. I’m betting that because the law is on our side.
“I think the SEC has massively overstepped and is trying to take kind of jurisdictional ownership over something that is … I think they saw this gray area they’re like ‘hey we are going to go in,’” the Ripple executive explained.
He added :
“It’s frustrating it’s taking this long. There’s a lot of companies, I think, that realize how important this case is to the whole industry.”
In April, Stuart Alderoty, legal counsel at Ripple, tweeted: “It now looks like a resolution will come in 2023 — and each day that passes is hurting U.S. citizens who were essentially the victims of a rug pull by the SEC. $15B in XRP market cap was destroyed the day the suit was filed, hurting the very people the SEC purports to protect.”