On May 8th, at the Dubai Fintech Summit, Ripple CEO Brad Garlinghouse announced that the company spent $200 million to defend itself in the case against the U.S. Securities and Exchange Commission (SEC).
In December 2020, the SEC had accused Ripple of illegally selling XRP and filed a lawsuit against Ripple worth $1.3 billion. The SEC had defined XRP tokens as unregistered securities. Ripple, however, objected to the case by arguing that XRP tokens did not constitute an investment contract.
“Entrepreneurs should stay away from the United States market.”Brad Garlinghouse
Furthermore, Garlinghouse said, “When we compare the cryptocurrency legislation proposals of the United Arab Emirates and the European Union with those of the US, we see that the US has not made any progress.”
According to Garlinghouse, the most challenging aspect of the current situation is that the US is a country where politics come before policy.
Garlinghouse also stated that he believes many US-based companies and publicly-traded companies share the same view. When asked if a clear regulatory framework is necessary for cryptocurrencies, Garlinghouse said that the SEC needs to understand that most people working in the cryptocurrency and blockchain space are good actors who want to comply with the rules.
John Deaton, who was previously a lawyer for XRP, stated that the judge is under immense pressure to make a fair decision for Ripple. Deaton also mentioned that the decision will not be as easy as expected, and patience is required.
In mid-April, during his testimony at the House Financial Services Committee, Gensler was also asked whether XRP is a security, but he left the question unanswered.
The Decision of the Case Can Come in 3-6 Months
The case has been ongoing for two years, and the decision was expected to be announced in the first week of April 2023. However, the decision was postponed, causing concern within the community. Garlinghouse has now made statements regarding the expected timeframe for the decision, stating that the judge’s decision may come between 3-6 months.
In conclusion, all cryptocurrency investors are eagerly awaiting this decision because a victory for Ripple is believed to be a victory for the entire cryptocurrency market.