Brad Garlinghouse, the CEO of Ripple is quite hopeful regarding the company’s long-running case with the Securities and Exchange Commission (SEC). Brad is optimistic that his blockchain-based global payments company could hear a result in favor of it.
Garlinghouse, addressing the attendees at Paris Blockchain Week on Thursday, shared that Ripple’s defense in the ongoing case is going stronger than he thought.
Garlinghouse says the lawsuit has turned out to be great and much better than what he could have even expected 15 months ago when it started.
The agency filed a suit against Ripple and its top executives Brad Garlinghouse and Christian Larsen in 2020. The SEC accused the executives of selling unregistered securities in the form of XRP.
A RippleNet community lawyer announced that Ripple had a “very big win” against the SEC. Presiding Judge Sarah Netburn dismissed the SEC’s request to review shielding documents under privilege. The documents are linked to William Hinman’s speech. William is the director at SEC and in his speech he clarified that Bitcoin (BTC) and Ethereum (ETH) are not securities.
Following this announcement by a RippleNet lawyer, the response of the founder came.
Garlinghouse goes on to say that the case is not just important for Ripple only. Its significance is for the whole crypto community in the United States.
He also pointed out the consequences if Ripple loses the case. He notes that the case can set an example, resulting in most crypto exchanges getting recognition of the “securities” by the SEC.
Now, this translates to the fact that the exchanges would be obliged to register themselves as brokers with the SEC and, further, would be compelled to register the identity of all token holders.
He explains that if XRP is declared as security of Ripple, then it would be necessary for the company to know every person who owns XRP under the requirements of the SEC. You have to know all of your shareholders. It’s not possible,” he adds.
However, Ripple’s win would mean the SEC pushing back from chasing the crypto industry.
Source: https://www.thecoinrepublic.com/2022/04/15/ripple-ceo-says-sec-case-exceedingly-well-better-than-i-expected-when-it-started/