Ripple CEO Brad Garlinghouse believes that the US Securities and Exchange Commission (SEC) will face a lengthy process before it has a chance to appeal the ruling in its case against Ripple Labs.
On July 13, U.S. District Judge Annalisa Torres ruled partially in favor of Ripple in a case brought by the Securities and Exchange Commission in 2020, ruling that the XRP token (XRP) is not a security when sold on retail digital asset exchanges.
However, Torres also ruled that XRP is a security when it is sold to institutional investors, as it meets the conditions specified in the Howey test.
in interview With Bloomberg on July 15, Garlinghouse dismissed the corporate sales decision as the “smallest part” of the lawsuit. He believes that if the SEC files an appeal against the retail sales ruling, it will only strengthen Torres’ decision.
Although Garlinghouse believes it may take some time before the SEC can file an appeal:
“As a matter of law, the law of the land right now is that XRP is not a security. Until the SEC has a chance to file an appeal, which could take years, frankly, we are very optimistic.”
Emphasizing that this is the first time the SEC has lost a “crypto case,” Garlinghouse called the SEC a “bully” and went after players in the cryptocurrency industry who could not “raise a proper defense.”
He also noted that when the case against Ripple was first filed, a lot of cryptocurrency exchanges in the US had a wait-and-see attitude due to the uncertainty. This led many exchanges, such as Coinbase and Kraken, to write off XRP completely.
Related: XRP rules a ‘watershed moment’, but we’re not out of the woods yet – lawyers
Garlinghouse said the SEC had “confused” the market.
“They knew there was confusion,” he said, “and they actually did things that they knew would add to the confusion.”
Garlinghouse explained that this confusion “actually disguised itself as a force” before the SEC, thus preventing innovation within the United States.
He stated that “the SEC was trying to put power and policy over what is really just sound policy and providing clear rules of the road.”
He noted that this made it difficult for entrepreneurs and investors to participate in the US crypto market and blockchain industry.
magazine: XRP Is Not a Security, Celsius CEO Arrested on Criminal Charges, and More: Hodler’s Digest, July 9-15
“Extreme travel lover. Bacon fanatic. Troublemaker. Introvert. Passionate music fanatic.”