Ripple CEO Garlinghouse Takes On SEC, Calls Them A ‘Bully’ In Wake Of XRP Ruling

Ripple CEO Brad Garlinghouse has stated that the recent federal court ruling has confirmed that XRP is “not a security”. The ruling provides the digital payments company with greater flexibility to pursue various business opportunities across the globe.

Speaking on Bloomberg TV, Garlinghouse expressed relief that the company could now promote the various use cases for Ripple and its technology without the fear of regulatory action.

Ripple CEO Calls Out SEC For Anti-Crypto Stance

The ruling signifies a win for the crypto industry over the US Securities and Exchange Commission (SEC), which sued Ripple in late 2020. The SEC accused the firm, co-founder Chris Larsen, and Garlinghouse of misleading investors by selling more than $1 billion worth of tokens without registering them.

US District Judge Analisa Torres in New York ruled that the company’s $729 million sales of XRP tokens to sophisticated investors met the test for an investment contract under federal securities law. However, this did not apply to hundreds of millions sold to the broader public through exchanges.

Garlinghouse called the SEC “a bully” and celebrated the ruling as the first time the agency lost a crypto case. The agency is expected to appeal the decision, but any appeals could take years. He further claimed:

This is a win for Ripple. It’s also a win for the entire crypto industry.

The ruling’s duality rests on the fact that retail buyers had no idea where their money was going or what it was being used for in many instances, in contrast to sophisticated institutions. The question remains whether this logic will gain ground in other legal battles or survive possible appeals.

One potential implication is that other cryptocurrencies deemed securities by the SEC may have the opportunity to challenge that classification in court. If other cryptocurrencies can prove that they are not securities and do not fit the legal definition of investment contracts, it could open up new opportunities for innovation and growth.

The Ripple ruling could

Go to Source to See Full Article
Author: Ronaldo Marquez

Did you like this?
Tip BTC Newswire with Cryptocurrency