In a recent interview with CNBC, Brad Garlinghouse, the CEO of Ripple, highlighted the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC) over the classification of XRP. Garlinghouse emphasized three consecutive wins for Ripple in the legal proceedings.
Firstly, Garlinghouse mentioned the judgment on July 13, which clearly stated that XRP is not a security. This ruling provides strong support for Ripple’s argument and challenges the SEC’s classification of XRP as a security.
Secondly, Garlinghouse pointed out that Ripple denied the court’s interlocutory appeal. This indicates that Ripple is confident in its position and believes that the court’s initial ruling was valid.
Lastly, allegations against Ripple co-founder Chris Larsen and Brad Garlinghouse were dismissed. This dismissal further strengthens Ripple’s case and undermines the SEC’s claims against the individuals associated with Ripple.
During the interview, Garlinghouse criticized the SEC’s approach to regulation by enforcement and lawsuit patterns. He expressed his concerns about the SEC’s deviation from its mission to protect investors. Garlinghouse questioned who the SEC is truly protecting in this journey and called for a change in their regulatory approach.
Garlinghouse’s critique sheds light on the need for regulatory clarity in the cryptocurrency industry. He emphasized that utility, scalability, and problem-solving capabilities are crucial for the industry to thrive. Garlinghouse acknowledged the potential benefits of an approved exchange-traded fund (ETF) in bringing significant capital to the market, but he stressed that regulatory clarity should be a priority.
In a separate development, John Deaton, a pro-XRP lawyer, weighed in on the issue of disgorgement demanded by the SEC. Deaton argued that Ripple would not come close to paying the $770 million disgorgement demanded by the SEC.
Deaton pointed out that the SEC’s claim for disgorgement related to XRP sales in jurisdictions where XRP is deemed a non-security is flawed. He highlighted that XRP was considered a legal exchange/utility token in those jurisdictions. Therefore, the SEC’s attempt to disgorge sales made in those jurisdictions lacks a solid legal basis.
Deaton further explained that the disgorgement amount would be significantly reduced after considering non-US sales, sales to accredited investors, and the minimal harm caused by On-Demand Liquidity (ODL) transactions. His analysis strengthens Ripple’s position and challenges the SEC’s demands.
The remarks made by Brad Garlinghouse and John Deaton underscore the gravity of the ongoing legal battle between Ripple and the SEC. Ripple continues to assert its stance on XRP’s classification and criticize the SEC’s regulatory approach.
The outcome of this high-profile case will likely have significant implications for the cryptocurrency industry as a whole. It will determine how regulators approach the classification of digital assets and the level of regulatory clarity that will be provided.
As of the time of writing, XRP is currently trading at $0.660. Although the token has exhibited a sideways price movement and consolidated around this crucial level, it has experienced substantial gains in recent times. Over the past 30 days, XRP has surged by more than 35%, and on a year-to-date basis, it has recorded an impressive growth of over 70%.
This performance indicates that despite the legal uncertainties, XRP investors remain optimistic about its potential and value within the cryptocurrency market.
The ongoing legal battle between Ripple and the SEC has raised important questions about the classification of digital assets and the regulatory approach taken by authorities. Ripple’s wins in the legal proceedings, along with criticisms from industry leaders like Brad Garlinghouse and John Deaton, highlight the need for regulatory clarity and a more balanced approach to regulation. The outcome of this case will shape the future of the cryptocurrency industry and impact the market as a whole. As XRP continues to show resilience and positive price movements, it is evident that investors remain hopeful about its potential in the long term.
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