Ripple CEO Brad Garlinghouse expressed displeasure at the SEC lawsuit and the state of the U.S. regulatory framework surrounding cryptocurrencies. He also mentioned that a conversation with the incoming SEC team was in the cards.
Ripple CEO, Brad Garlinghouse talked about the company’s lawsuit with the Securities and Exchange Commission (SEC) on Bloomberg Technology earlier today.
Speaking on the show, Garlinghouse described the lawsuit as not just an attack on Ripple, but on the entire cryptocurrency industry.
The debacle kicked off when the regulatory body slapped Ripple with a lawsuit last December. The SEC charged Ripple for allegedly conducting an unregistered securities offering. This birthed argument surrounding the classification of its native XRP currency.
The Ripple Effect
Ripple vehemently opposed the SEC’s classification of the XRP. It argued that XRP was not a security, but a cryptocurrency similar to bitcoin or Ethereum.
The saga has heated up in the past few months, and Brad Garlinghouse says that they will “fight vigorously” against the charges. He further pointed out that the US’ SEC was the only regulatory watchdog to deem XRP a security among other developed countries.
The lawsuit had a brief disastrous effect on the company. The price of XRP fell more than 70% following the announcement of the lawsuit. Many exchanges even delisted XRP to avoid facing SEC sanctions. It’s seen some relief in the past month or so and is currently trading for $0.56.
New SEC Administration Could Turn the Tables
With few days to go in office, the Jay Clayton-led SEC sued Ripple in December 2020. This raised suspicion amongst many that the lawsuit was a personal attack on Ripple and its founders, Brad Garlinghouse and Chris Larsen.
”As you may know and may recall, J. Clayton as the chair of the SEC, the day before he left office, brought this lawsuit against Ripple and against me personally. You know we don’t think that made a lot of sense given that XRP had been trading for eight years. And so, to do that the day before he leaves his position, I think it was misguided.”
There appears to be more than just a glimmer of hope for Ripple with Gary Gensler set to take over the helm of affairs in SEC. Gensler seems to be more open-minded towards cryptocurrency following some pro bitcoin comments in the past. When asked about the possibility of a settlement, Garlinghouse shared this optimism for the new administration.
“I’m hopeful with Gary Gensler and the new chair likely to be confirmed in a couple of weeks. There’s an opportunity to have a conversation with that new leadership as he brings his team in.”