Ripple CEO Brad Garlinghouse believes the SEC will face a lengthy process before it has a chance to appeal Judge Torres’ favorable ruling in the case against Ripple.
On July 13, Judge Torres ruled partially in favor of Ripple Labs in a case brought by the Securities and Exchange Commission in 2020, ruling that the XRP token (XRP) is not a security in connection with retail sales on digital asset exchanges.
However, Torres ruled that XRP is a security when it is sold to institutional investors, as it meets the conditions specified in the Howey test.
in interview With Bloomberg on July 15, Garlinghouse dismissed the institutional sales decision as the “smallest part” of the lawsuit, and believes that if the SEC were to file an appeal against the retail sales ruling, it would “harden” the decision Judge Torres made.
Garlinghouse believes it may take some time before the SEC can file an appeal.
“As a matter of law, the law of the land right now is that XRP is not a security. Until the SEC has a chance to file an appeal, which could take years, we are frankly very hopeful.”
Garlinghouse confirmed that this is the first time the SEC has lost a “crypto case.” He called out the SEC for being a “bully” and going after “weak players” in the cryptocurrency industry who were unable to “raise an adequate defense.”
He also noted that when the case against Ripple was first filed, a lot of cryptocurrency exchanges in the US had a wait-and-see attitude, due to the uncertainty.
Related: XRP rules a ‘watershed moment’, but we’re not out of the woods yet – lawyers
This is because the SEC “created confusion” in the market, according to Garlinghouse.
“They knew there was confusion, and they actually did things that they knew would add to the confusion.”
We said in December of 2020 that we were on the right side of the law, and we would be on the right side of history. Thank you to everyone who helped us reach today’s decision – one dedicated to all cryptocurrency innovation in the United States. More is coming.
– Brad Garlinghouse (@bgarlinghouse) July 13, 2023
Garlinghouse explained that this “confusion” was actually masquerading as “force” before the SEC, but it prevented innovation from happening in the US
“The SEC has tried to put power and policy over what is really just sound policy and provides clear rules of the road,” he said, adding that it has made it difficult for American entrepreneurs and investors to get involved in the cryptocurrency market and blockchain technologies.
magazine: XRP Is Not a Security, Celsius CEO Arrested on Criminal Charges, and More: Hodler’s Digest, July 9-15
