Brad Garlinghouse, the chief executive officer of Ripple Labs, has voiced his expectation for a forthcoming court ruling in the company’s ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC). The SEC initiated legal proceedings against Ripple in December 2020, accusing the firm of selling XRP as an unregistered security.
In a conversation with Mukaya (Tai) Panich, the chief executive of tech investment firm SCB 10X, Garlinghouse conveyed his belief that a court ruling in Ripple’s favor could set a precedent for the wider cryptocurrency sector. He referenced recent events involving William Hinman, the SEC’s ex-Director of Corporate Finance, who had previously stated that Ethereum (ETH) was not a security. Given these circumstances, Garlinghouse anticipates a U.S. District Court Judge Analisa Torres ruling in the coming weeks.
Garlinghouse drew attention to a recent court decision that rejected the SEC’s attempt to conceal certain details related to Hinman’s speech. The court ordered that the notes and emails linked to Hinman’s speech be disclosed by June 13th. Garlinghouse sees this as a victory for transparency and a clear sign of the regulatory ambiguity that persists despite calls for clearer regulations from crypto industry leaders.
Garlinghouse affirmed his commitment to continue the legal battle, not just for Ripple but for the entire industry. However, he acknowledged that the ongoing legal dispute with the SEC and the lack of regulatory clarity in the US had prompted many industry participants to consider relocation or outsourcing.
Garlinghouse criticized the US government and the SEC for prioritizing political considerations over intelligent policy decisions. He believes this approach is pushing entrepreneurs and companies to look overseas. He disclosed that Ripple is now focusing its recruitment and customer acquisition efforts outside the US due to the current regulatory environment.