TL;DR
- Ripple’s CEO is ready to fight the SEC in the Supreme Court and declined an out-of-court settlement, suggesting Ripple’s strong legal position.
- The SEC dropped all charges against Ripple’s executives, with Ripple seeing a series of legal wins, indicating the SEC may be under pressure.
- Despite victories, Ripple’s CEO calls for clearer U.S. crypto regulations and is focusing the company’s growth in more crypto-friendly countries.
Ripple’s Determination Against the SEC
Brad Garlinghouse, CEO and co-founder of Ripple, is unyielding in his stance against the SEC and is prepared to take the case to the Supreme Court. He made this clear during an interview at D.C. Fintech Week 2023, emphasizing that open dialogue between the industry and the SEC would be a positive step forward.
Garlinghouse also revealed that Ripple had been offered an out-of-court settlement but refused it. He interpreted this as evidence that Ripple has the upper hand in the legal battle against the SEC.
Ripple’s Legal Victories
In a significant victory for Ripple, all charges against Garlinghouse and Executive Chairman Chris Larsen were dropped by the SEC in mid-October. This follows three consecutive legal wins for Ripple this year, which include rulings that secondary sales of XRP do not constitute investment contracts and the dismissal of the SEC’s request for interlocutory appeal against a court decision.
Calls for Better Regulation
While celebrating these victories, Garlinghouse emphasizes that beating the SEC is not enough. He believes that there needs to be clearer crypto regulations in the U.S. In his view, other countries such as Japan, Australia, Switzerland, and Singapore are leading in this regard and provide a more favorable environment for crypto companies.
This sentiment has led Ripple to focus on expanding its operations overseas rather than in the U.S., with 80% of their hiring taking place outside of the country.
Hot Take: The Road Ahead for Ripple
Ripple’s determination to fight the SEC in court reflects its confidence in its legal position. However, while celebrating recent legal victories, Garlinghouse emphasizes that regulatory clarity is essential for crypto companies to thrive. As they continue to expand internationally, it remains to be seen how U.S. regulatory challenges will impact Ripple’s future growth and operations.
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