Brad Garlinghouse, CEO of Ripple, has expressed his frustration with the SEC’s decision to pursue an appeal in their ongoing legal battle.
In a clip from an interview on Bloomberg that was posted on X, Garlinghouse expressed his dissatisfaction with the SEC’s desire to keep fighting the battle. However, he said the fact remains that XRP is not a security as proclaimed by the court.
The Story So Far
In July, the court determined that Ripple’s sales of XRP to institutional investors constituted investment contracts. But in the same ruling, the court made a distinction that Ripple’s programmatic sales of XRP and other distributions didn’t qualify as securities. Furthermore, the court explicitly stated that XRP itself was not a security.
However, the SEC disagreed with the court in part, prompting its request for the court’s permission for an interlocutory appeal to challenge this ruling.
Brad Garlinghouse’s Frustrations
According to Garlinghouse, it is frustrating that the government with unlimited resources chooses to keep fighting an already lost battle. Although he stated that Ripple has already spent over $100 million defending the case, he said he’s very optimistic because it has been established that XRP is not a security.
Garlinghouse emphasized that the court has unequivocally stated that XRP is not a security. The SEC’s appeal doesn’t challenge XRP’s non-security status but focuses on whether certain transactions constitute investment contracts.
In the face of this, Garlinghouse expressed optimism, saying, “The facts are on our side and the law is on our side and we’ll continue to prevail in court because of that.”
Ripple CEO Brad Garlinghouse says over 80% of hiring this year will be outside US, where the crypto payments company is embroiled in a long-running legal dispute with the SEC https://t.co/BqKGTRFK95 pic.twitter.com/nZJyMMBvpY
— Bloomberg Crypto (@crypto) September 13, 2023
Regulatory Uncertainty in the U.S.
In response to regulatory uncertainty in the United States, Garlinghouse revealed that 80% of Ripple’s hiring in 2023 will be outside the United States. Other countries like Singapore, Dubai, Hong Kong, and the U.K. are partnering with the crypto industry and providing clear regulations, fostering growth.
He said the door isn’t completely shut to the U.S. becoming the next global crypto hub but stated that they’re in a tight spot. He mentioned that as time goes on, there will be some shifts as new administrations come in.
The U.S. lags in regulatory clarity for crypto. Garlinghouse speculated that the U.S. Congress might need to address this uncertainty soon. He also brought up the Grayscale ruling against the SEC and how their actions are causing judges to use harsh words against them.