In a recent interview with Bloomberg, Ripple CEO Brad Garlinghouse discussed Judge Torres’ positive decision in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).
Garlinghouse began by outlining the SEC’s lawsuit against Ripple Labs and its co-founder Chris Larsen. He stressed that the SEC lost the case against Larsen and him, while Ripple Labs won most of the case, except for the narrow definition of the business sale.
The CEO stressed that the judge’s decision made it clear that Ripple’s native cryptocurrency XRP is not a security in certain circumstances.
He acknowledged that XRP could be considered a security when sold to institutions with accompanying documentation, but stressed that this is only a small part of Ripple’s business.
Garlinghouse said the market has reacted positively to the decision, and Ripple and the industry as a whole have benefited from the clarity of the decision. He highlighted the significant growth in the value of XRP and the coin’s relisting on major U.S. exchanges such as Bitstamp, Gemini, Kraken and Coinbase as evidence of the positive impact of the decision.
Garlinghouse expressed optimism about the SEC's potential appeal, believing it would further solidify the judge's decision. He said the legal process could take years, by which time XRP would no longer be a security under the law.
Garlinghouse criticized the SEC for overcorrecting, stressing that the judge’s decision made it clear that not everything in the cryptocurrency space should be considered a security.
When asked about the most important use case for XRP, Garlinghouse emphasized that Ripple is focused on solving the inefficiencies of cross-border payments. He explained that Ripple is using XRP as part of its technology cluster to increase the speed and reduce the cost of cross-border transactions.
He also spoke about the potential of blockchain technology to revolutionize various industries such as real estate.
Garlinghouse said he received a lot of support from his industry colleagues after the judge’s ruling. Garlinghouse described the outcome as a victory for the crypto industry and said Ripple’s decision to fight the SEC sets an example for others.
Garlinghouse criticized the SEC for relying on sanctions rather than providing clear regulatory guidelines, and he stressed the need for clear rules to encourage market innovation and growth.
Garlinghouse also noted that members of Congress have begun to pay attention, urging them to pass legislation that would provide the necessary clarity that the SEC currently lacks.
