Ripple CEO, Brad Garlinghouse, has recently spoken about the success of Ripple and XRP since the start of the long-standing lawsuit filed in December 2020 by the United States Securities and Exchange Commission (SEC) against the cross-border payment firm.
When asked how the Ripple-SEC case was going during a recent interview with Bloomberg Crypto, Garlinghouse said the case is being closely followed by the crypto community on Twitter because is not just about Ripple but the whole cryptocurrency ecosystem.
Brad Garlinghouse noted:
“The reason why the Twitter crypto community care so much about this question is it’s not just about Ripple… the whole industry is impacted by this decision. And the core question… boils down to a 1946 Supreme Court case that has become known as the Howey Test, a test to determine is something a security or not…
“The irony is that the only country on the planet that thinks XRP is a security is the United States… The case has gone well… the SEC in our judgment has certainly moved slowly. Typically, in these situations, when the SEC brings the case, they want to move quickly. They have been dragging their feet.
“Gary Gensler recently publicly said that justice delayed is justice denied, and unfortunately justice is being delayed here by continuing efforts by the SEC to push things out.”
What If the SEC Wins the Lawsuit, How Would Ripple Respond?
In the course of the interview, Garlinghouse was told that Bloomberg’s litigation analysts are of the opinion that the SEC will win the lawsuit eventually. He was then asked how Ripple would respond if the prediction comes to pass.
“I think that the Howey Test is being stretched beyond recognition again… So, the idea that XRP, which we use as a currency, is a security, I think is, you know, just misguided.
“But look, unfortunately, Ripple is already operating in a world where it’s as if we have lost, right? So, in the United States, XRP has all for all intents and purposes, there’s no liquidity. It’s been halted and frozen on most US based exchanges.
“Despite that fact, Ripple had a record year last year. We continued to grow very quickly across our major product groups. Even Q1 was a record for us. Now, unfortunately, that growth is almost all coming from outside the United States, and we are in hiring more and more people outside the United States, but our customer base now is about 95% non-US payment companies.”
How Customers outside the United States Are Using XRP
Speaking about how customers outside the United States are using the digital token XRP, Ripple CEO said:
“The demand for our core product, which uses XRP to facilitate these cross-border payments, grew 8X year over year. So, from Q1 last year to Q1 this year, it grew 8X, and that’s off a base already, measured in the billions. So, from our point of view, demand has skyrocketed.”