In a recent interview with Bloomberg, Ripple CEO Brad Garlinghouse discussed Judge Torres' positive decision regarding the ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC).
Garlinghouse began by providing an overview of the lawsuits filed by the SEC against Ripple Labs, itself, and co-founder Chris Larsen. He stressed that the SEC lost the lawsuits filed against Larsen and him, while Ripple Labs mostly prevailed except for a narrow definition of corporate sales.
The CEO emphasized that the judge's decision made it clear that XRP, Ripple's native cryptocurrency, is not a security in certain circumstances.
He acknowledged that XRP could be considered a security when sold to institutions with accompanying paperwork, but underlined that this constitutes a small part of Ripple's operations.
Garlinghouse stated that the market reacted positively to the decision, and Ripple and the entire industry benefited from the clarity provided. He highlighted the significant increase in the value of XRP and the re-listing of the coin on major US exchanges such as Bitstamp, Gemini, Kraken and Coinbase as proof of the positive impact of the decision.
Regarding the SEC's possible appeal, Garlinghouse expressed optimism that this would further solidify the judge's decision. He stated that the legal process could take years, and by then it was considered that XRP was not legally a security.
Criticizing the SEC's overkill, Garlinghouse emphasized that the judge's decision is a clear indication that not everything in the crypto space should be considered securities.
When asked about the most important use case for XRP, Garlinghouse emphasized that Ripple is focused on solving cross-border payment inefficiencies. He explained that Ripple is leveraging XRP as part of its technology cluster to increase the speed of cross-border transactions and reduce their costs.
He also talked about the potential of blockchain technologies to revolutionize various industries such as real estate.
Garlinghouse said he received great support from his industry colleagues following the judge's decision. Describing the result as a victory for the crypto industry, Garlinghouse stated that Ripple's decision to fight the SEC sets an example for others.
Criticizing the SEC's reliance on sanctions rather than providing clear regulatory guidelines, Garlinghouse highlighted the need for clarity to encourage market innovation and growth.
Garlinghouse also noted that members of Congress are beginning to pay attention, urging them to pass legislation that provides the necessary clarity that the SEC currently lacks.
*Not investment advice.
