TL;DR
- Ripple’s CEO is ready to fight the SEC in the Supreme Court and declined an out-of-court settlement, suggesting Ripple’s strong legal position.
- The SEC dropped all charges against Ripple’s executives, with Ripple seeing a series of legal wins, indicating the SEC may be under pressure.
- Despite victories, Ripple’s CEO calls for clearer U.S. crypto regulations and is focusing the company’s growth in more crypto-friendly countries.
Ripple is In It Till the End
Ripple’s CEO and co-founder Brad Garlinghouse is fearless against the SEC, as he and his legal team are ready to take the case to the Supreme Court —the highest judicial authority in the U.S.
“I think that definitely could happen. I mean, certainly. And we’ve said this publicly —we are in it till the end.”
Those were Garlinghouse’s words during an interview in the D.C. Fintech Week 2023, a conference that brings renowned FinTech executives held at Washington D.C. Garlinghouse opened the interview by stating that “an open dialogue between the industry and the SEC would be a step forward from where we are now.”
The comment follows the SEC’s indications that it could potentially appeal the case, scaling things further to the Supreme Court.
Does Ripple Have the Upper Hand?
Garlinghouse revealed that the company received an offer to settle the case out of court. He denied it, stating that the offer was met “with prejudice” —which he interprets as Ripple having the upper hand.
“That feels really good,” Garlinghouse said. “It feels like… There’s no chance they were going to win that. Pushing that the way they did, it just feels like the SEC should be part of the solution.”
In mid-October, the SEC dropped all charges against Garlinghouse and Executive Chairman Chris Larsen, marking a significant victory for Ripple. Garlinghouse Expressed relief after three years of ongoing battle and over $200M spent on attorneys and legal fees.
Overall, one could speculate that the regulatory agency is feeling the pressure after Ripple scored three consecutive wins this year — secondary sales of XRP were ruled not to constitute investment contracts, executives cleared of all charges (considered baseless), and the SEC getting its request for interlocutory appeal against the court’s decision dismissed.
Beating the SEC is Not Enough—We Need Better Regulation
Garlinghouse doesn’t think beating the SEC is enough to bring banks and financial institutions to crypto. The regulatory landscape has to change, stating that the U.S. is stuck and rather hostile towards builders and crypto companies. Other countries are far ahead when it comes to proper regulatory frameworks and clearer crypto guidelines.
“Japan, Australia, Switzerland, Singapore —these are countries that are leading… And you see entrepreneurs set up shop in those countries because the rules are clear.” He stated.
The above comment is also essentially the reason why Ripple continues to expand overseas instead of locally; 80% of Ripple’s hiring this year was and will continue to be outside the U.S. “Why would I want to hire more and more people in the United States when the U.S. is making it hostile for me to operate here?” Garlinghouse added.”
The company has successfully expanded to Australia, the UK, Africa, and the Gulf States.
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