Ripple CEO Brad Garlinghouse recently made statements which predicted a long wait before the U.S. Securities and Exchange Commission (SEC) can file an appeal following Judge Torres' ruling on the Ripple case.
According to an interview from Garlinghouse with Bloomberg on July 15, the executive estimates that the SEC's opportunity for appeal could take "years." No other precise detail in terms of this claim was disclosed, however.
On July 13, Judge Torres partially ruled in favor of Ripple Labs in a lawsuit initiated by the SEC in 2020. The judgement states that the XRP token, with respect to retail sales on digital asset exchanges, is not a security. However, Judge Torres ruled that XRP qualifies as a security when sold to institutional investors, in accordance with the criteria of the Howey Test.
Garlinghouse emphasized that the ruling about institutional sales represents "the smallest piece" of the lawsuit. He believes that if the SEC decides to appeal the ruling regarding retail sales, it would only "further solidify" Judge Torres' decision.
Garlinghouse said:
"As a matter of law, the law of the land right now is that XRP is not a security. Until there is an opportunity for the SEC to file an appeal, which would take years, frankly, we are very optimistic.”
SEC Accused of Bullying TacticsGarlinghouse also took the opportunity to criticize the SEC, alleging it acted as a "bully" by targeting "weak players" in the crypto industry incapable of mounting a strong defense. He indicated that the Ripple lawsuit marked the first defeat for the SEC in a "crypto case."
The Ripple CEO noted the SEC's lawsuit initially led to uncertainty among U.S. crypto exchanges, causing a wait-and-see attitude due to market confusion. According to Garlinghouse, the SEC deliberately fostered this confusion to increase its power, thereby stifling innovation in the U.S.
Impact on the Crypto MarketGarlinghouse argued that the SEC's power play and political manoeuvring have overshadowed sound policy and clear regulatory guidelines. This stance, he says, has hampered U.S. entrepreneurs and investors from fully participating in the crypto market and embracing blockchain technologies.
While the recent performance of XRP may be impacted by these developments, the broader implications revolve around regulatory clarity in the crypto industry, and this is something that requires closer attention in terms of how it evolves and becomes more complex with each new case.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
