Ripple’s Chief Executive Officer Brad Garlinghouse expressed shock as the legal dispute has developed and believed that the SEC’s objective isn’t about “a faithful allegiance to the law”. It’s about power under the garb of interest protection, he alleged.
There is no regard for those companies and people that this approach has harmed. We all should be outraged. The SEC has clearly forgotten that the government works for the people.
Garlinghouse also brings light to the agency’s glaring disregard for the people and businesses that have been harmed by the agency’s strategy. The SEC charged Ripple and its top executives with selling unregistered securities in a 2020 lawsuit.
Last week, during DC Fintech Week, event, the CEO said he expects the court to rule on the lawsuit in the first half of 2023.
“I think we’ll have an answer in the first half of next year. Whether that’s the first quarter or second quarter, we shall see,” he said.
SEC filed a formal lawsuit against Ripple in December 2020 for allegedly breaking securities laws. According to the regulator, between 2013 and 2020, the blockchain firm and two of its executives raised $1.3 billion by selling unregistered securities to foreign investors through the sale of XRP tokens.
Ripple and the entire crypto industry were taken aback by the SEC lawsuit because there had been no indication that the watchdog was keeping an eye on the business.
Ripple CEO- SEC’s Decision Will Only Benefit China
The SEC regulations, according to Ripple, were not broken because XRP is not a security. Garlinghouse asserted following the lawsuit that his business was specifically chosen for close examination.
The regulator “should not be able to cherry-pick what innovation looks like (especially when their decision directly benefits China),” Garlinghouse continued.
A motion to access internal records, including emails and drafts, pertaining to a 2018 speech by former SEC executive William Hinman was granted by Ripple last month.
Because the commissioner believed that Ether, like Bitcoin, is not a security, Hinman made comments about Ether’s legal status in the documents that the Commission wished to keep private.
The SEC lawsuit is an assault on the cryptocurrency industry, and the outcome will determine the future of the sector, the Ripple CEO emphasized once more.