The CEO of Ripple, Brad Garlinghouse, has reportedly filed a motion to suspend the lawsuit that the Securities and Exchange Commission [SEC] of the United States imposed against the crypto platform.
While Ripple has time and again tried to diminish claims of XRP being a security, the SEC outrightly accused Ripple of selling unregistered securities. Despite Ripple denying this, the SEC went on to prolong this lawsuit. Amidst this, Brad Garlinghouse decided to write to the Federal Judge urging her to terminate the lawsuit against him.
Brad Garlinghouse Believes SEC’s Lawsuit Against Him Is “Regulatory Overreach.”
The SEC hit Ripple with the lawsuit back in December 2020, however, this lawsuit went in for a little alteration. The amended version pointed out that the CEO of the company, Brad Garlinghouse, along with its former CEO Chris Larsen was part of manipulating the XRP market. Further denying these accusations, a recent letter submitted to Federal Judge Analisa Torres, by Garlinghouse’s lawyers on behalf of the CEO suggested that SEC’s lawsuit against him should be dismissed on grounds of regulatory overreach.
The letter further suggested that Garlinghouse had alerted the SEC of its inaccuracies during the investigative process itself. However, the same “defects” have reportedly been carried forward in its amended version as well. The letter further read,
“The SEC has not adequately alleged that Mr. Garlinghouse knew or recklessly disregarded that Defendants’ transactions in XRP were investment contracts or that Ripple was somehow acting improperly in selling XRP such that he can be liable for aiding and abetting Ripple’s sales. Nor – under Supreme Court and Second Circuit precedent – can the SEC establish that Mr. Garlinghouse’s sales and offers of XRP fall within the territorial scope of the Securities Act.”
Brad Garlinghouse, has about four lawyers – Alexander Javad Janghorbani, Lucas Dehaan Hakkenberg, Matthew Solomon as well as Samuel Loewenson Levander representing him against the SEC. A total of twenty-one lawyers are helping Ripple in this lawsuit.
While Ripple awaits trial, XRP continues to slump like the other coins in the market.