The SEC’s lawsuit against Ripple is expected to yield positive results for the blockchain company, according to its chief executive, Brad Garlinghouse.
Live from #PBWS2022, @bgarlinghouse sat down with @cnbc‘s @ryan_browne_ to talk crypto regulation, Ripple’s global traction and use cases that he sees growing across the industry. pic.twitter.com/ouQYhY3B5n
— Ripple (@Ripple) April 14, 2022
“The litigation has gone very well, and much better than I could have hoped when it began about 15 months ago. But the wheels of justice turn slowly,” said the head of the firm.
He stressed that the case is important not only for Ripple but for the entire crypto industry in the United States.
According to Garlinghouse, a loss for the company would set a precedent, potentially leading the SEC to classify most tokens on exchanges as securities.
This would mean trading platforms would have to register with the Commission and verify all token holders.
“If you classify XRP as a Ripple security, we must know every person who owns XRP. This is the SEC’s requirement. You must know all of your shareholders. This is impossible,” added Garlinghouse.
In the event of a Ripple victory, he believes the regulator could soften its aggressive stance toward the industry.
Garlinghouse’s statement came after the Commission could not obtain a review of the confidentiality of certain documents under the DPP. They relate to the 2018 speech by former director of the regulator’s corporate finance division William Hinman — at that time the official stated that Bitcoin and Ethereum are not securities.
Earlier, Ripple’s CEO criticized the SEC for failing to provide clear legal norms for the industry. In his view, such a position threatens American innovation.
The lawsuit against the company he called a terrible precedent for the entire industry and for any company working with digital assets, and regulatory arbitrariness.
Back in November 2021, Garlinghouse said that the dispute with the SEC could be resolved in 2022.
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