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.
Ripple Chief Executive Officer Brad Garlinghouse talked earlier today on Bloomberg Technology about the company’s suit against the Securities and Exchange Commission (SEC).
Garlinghouse described the lawsuit, speaking about the show, as not simply an attack against Ripple, but on the entire crypto-monetary industry.
The debacle started as Ripple was fired last December by the regulatory body. Ripple was charged by the SEC with the alleged unregistered offer of securities. This argue was born around its native XRP currency classification.
The Ripple Effect
Ripple was strongly against the XRP classification of the SEC. It argued that XRP was a cryptocurrency like Bitcoin or Ethereum, rather than a security device.
In recent months the saga has risen and Brad Garlinghouse says he will ‘energetically combat’ the charges. He also noted that the US SEC is the only regulatory watchdog for considering XRP as a security among other advanced countries.
The prosecution had a short catastrophic impact on the company. After the prosecution announcement XRP prices decreased by over 70 percent. In order to avoid SEC sanctions, numerous exchanges even de-listed XRP. In the past month or so, there has been some relief and $0.56 is being traded now.
New SEC Administration Could Turn the Tables
The SEC led by Jay Clayton sued him in December 2020 with just a few days to go into office. This suspected many that Ripple and his founders Brad Garlinghouse and Chris Larsen had been personally assailed.
”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.”
It seems like Ripple is not just a sparkle, Gary Gensler is set to take over the lead in SEC. After a number of pro- Bitcoin comments, Gensler appears to be more inclined toward cryptocurrency. Garlinghouse shared this optimism with the new administration when asked about the possibility of a settlement.
“In a couple of weeks’ time, I am hopeful to Gary Gensler and the new chair. There’s a chance to talk to this new leadership as he introduces his team.”
