Ripple CEO Brad Garlinghouse Slams SEC, Hopeful for New Administration

Share Article
In Brief
  • Ripple CEO says the company will continue to fight against the lawsuit

  • Garlinghouse slammed the US SEC for lagging behind in regulatory clarity

  • He is hopeful that the new SEC administration will be more receptive

  • promo

    Free Cloud Mining Providers to Mine Bitcoin in 2021

The Trust Project is an international consortium of news organizations building standards of transparency.

Ripple CEO Brad Garlinghouse expressed displeasure at the SEC lawsuit and the state of the U.S. regulatory framework surrounding cryptocurrencies. He also mentioned that a conversation with the incoming SEC team was in the cards.

Sponsored



Sponsored

Ripple CEO, Brad Garlinghouse talked about the company’s lawsuit with the Securities and Exchange Commission (SEC) on Bloomberg Technology earlier today.

Speaking on the show, Garlinghouse described the lawsuit as not just an attack on Ripple, but on the entire cryptocurrency industry.

Sponsored



Sponsored

The debacle kicked off when the regulatory body slapped Ripple with a lawsuit last December. The SEC charged Ripple for allegedly conducting an unregistered securities offering. This birthed argument surrounding the classification of its native XRP currency.

The Ripple Effect

Ripple vehemently opposed the SEC’s classification of the XRP. It argued that XRP was not a security, but a cryptocurrency similar to bitcoin or Ethereum.

The saga has heated up in the past few months, and Brad Garlinghouse says that they will “fight vigorously” against the charges. He further pointed out that the US’ SEC was the only regulatory watchdog to deem XRP a security among other developed countries.

The lawsuit had a brief disastrous effect on the company. The price of XRP fell more than 70% following the announcement of the lawsuit. Many exchanges even delisted XRP to avoid facing SEC sanctions. It’s seen some relief in the past month or so and is currently trading for $0.56.

New SEC Administration Could Turn the Tables

With few days to go in office, the Jay Clayton-led SEC sued Ripple in December 2020. This raised suspicion amongst many that the lawsuit was a personal attack on Ripple and its founders, Brad Garlinghouse and Chris Larsen.

”As you may know and may recall, J. Clayton as the chair of the SEC, the day before he left office, brought this lawsuit against Ripple and against me personally. You know we don’t think that made a lot of sense given that XRP had been trading for eight years. And so, to do that the day before he leaves his position, I think it was misguided.”

There appears to be more than just a glimmer of hope for Ripple with Gary Gensler set to take over the helm of affairs in SEC. Gensler seems to be more open-minded towards cryptocurrency following some pro bitcoin comments in the past. When asked about the possibility of a settlement, Garlinghouse shared this optimism for the new administration.

“I’m hopeful with Gary Gensler and the new chair likely to be confirmed in a couple of weeks. There’s an opportunity to have a conversation with that new leadership as he brings his team in.”

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Daniel is an avid blockchain and cryptocurrency enthusiast. He gained interest in the digital asset space in 2017. Since then, he started writing educational content to spread the word on the distributed ledger technology.

Follow Author

Crypto predictions with the Best Telegram Signal with +70% accuracy!

Join now

Free Cloud Mining Providers to Mine Bitcoin in 2021

Go

How To Mine Cryptocurrency: Beginner’s Guide

Let's Go