Ripple May ‘Walk Through Door and Slam It Shut’ in SEC Case, Ripple CTO Says

Founder and managing member of Dizer Capital Yassin Mobarak has taken to Twitter to comment on a recent Twitter statement by Ripple’s chief technology officer and co-creator of XRP Ledger, David Schwartz.

He referred to a recent comment of Schwartz, in which he stated that they, apparently meaning Ripple, “may be tempted to walk through a door and shut it” behind themselves.

Ripple threatens Gensler with Supreme Court

The discussion started on Feb. 21 by Twitter user Mr. Huber2 (@Leerzeit), who commented on a recent tweet by Ripple’s chief legal officer Stuart Alderoty. The latter published a post, in which he dropped a hint that Ripple may move the SEC case to the U.S. Supreme Court should the current judge take the side of the SEC.

Alderoty tweeted that the regulator has already lost four of its last five cases in the Supreme Court.

Twitter user Mr. Huber reckons that, in this way, Alderoty was threatening SEC chair Gary Gensler to settle on the terms suggested by Ripple. This would give the fintech giant “a unique advantage and clarity over all others.” Otherwise, Mr. Huber believes, Alderoty means that Ripple “will take away his jurisdiction over crypto” by beating the SEC in the Supreme Court.

Here’s where David Schwartz joined in with his comment to say that Ripple cannot win without the whole crypto space winning as well. He added that Ripple “will always prefer wins for everyone in the space if we can.”

Ripple CTO’s puzzling tweet

The CTO of Ripple then published a tweet that had Yassin Mobarak slightly confused. Schwartz wrote that his company may be put in a position where they would be “tempted to walk through a door” and slam it shut behind them. He said that he would not like Ripple to do this but cannot promise that it will not happen.

This tweet from @JoelKatz is kind of worrying me a bit. Who goes through the door? & who is shut out?

1. Ripple goes through the door and retail XRP holders are shut out.

2. Ripple & XRP go through the door and the rest of the crypto space is shut out.

Is it 1 or 2? https://t.co/HEOcPR1xyF

— Yassin Mobarak (@Dizer_YM) February 22, 2023

Momarak called this tweet “kind of worrying” and suggested two interpretations. In the first one, it is Ripple that will walk through the door, shutting it and leaving XRP holders behind. The second is that “Ripple and XRP go through the door and the rest of the crypto space is shut out.”

It is hard to say what exactly Schwartz meant here, but judging from the previous statements of Ripple’s executives, this might be either that they will indeed take the case to the Supreme Court or that they will end the lawsuit only by getting XRP acknowledged as a nonsecurity asset. Previously, Brad Garlinghouse said several times that Ripple would like to get a clear set of regulatory rules from the SEC for the whole crypto space to follow in order to know how to play the game.

Earlier, Ripple chief Garlinghouse also mentioned that should the company lose the case to the SEC, Ripple would most likely leave the U.S. for a crypto-friendly jurisdiction such as Japan or the UAE.