Brad Garlinghouse, the CEO of Ripple, recently celebrated what he views as a pivotal moment not just for his company, but for the entire cryptocurrency industry. The focal point of this triumph was Ripple’s partial victory against the U.S. Securities and Exchange Commission (SEC). In a candid conversation at a Messari panel, Garlinghouse did not mince words when describing the SEC’s tactics as bullying rather than lawful pursuit.
He stressed the importance of standing up against such heavy-handed tactics, likening it to confronting a bully in the schoolyard. Garlinghouse commended industry leaders like Grayscale and Coinbase for their unwavering resistance, acknowledging that not many had the conviction or resources to do so. Highlighting the impact of resilience against overreach, he declared,
“When you stand up to them, they are losing.”
Garlinghouse also recounted how, when Ripple faced legal action in December 2020, some in the industry believed that Ripple and XRP were distinct due to their decentralized nature. However, the firm maintained that it was an attack on the entire crypto space. He noted that this perspective has gradually gained traction within the industry.
Ripple’s “Freight Train” Moment: Judge’s Verdict
Ripple’s standoff with the SEC resulted in a significant, albeit partial, victory. The court ruled that XRP tokens affiliated with Ripple did not qualify as investment contracts, prompting major exchanges to relist the cryptocurrency. Garlinghouse viewed this ruling as a resounding triumph, emphasizing that the SEC had lost on all fronts in terms of what they aimed to achieve. He compared it to a “freight train” dismantling Chairman Gensler’s argument that nearly all cryptocurrencies, excluding Bitcoin, should be classified as securities.
Garlinghouse pointed out,
“Now, we clearly have a federal judge saying XRP is not a security.”
In conclusion, Brad Garlinghouse’s perspective on Ripple’s legal battle against the SEC sheds light on a broader issue within the cryptocurrency industry: the need to stand up against regulatory overreach. The firm’s victory, as he sees it, not only vindicates his company but also sets a precedent for others in the crypto space to resist bullying tactics and assert their rights. It remains to be seen how this landmark ruling will influence future regulatory discussions surrounding cryptocurrencies.