Ripple’s legal battle with the SEC costs $200m

Ripple spent $200m on legal fees in the case against the U.S. Securities and Exchange Commission (SEC), said CEO Brad Garlinghouse. This was reported by Cointelegraph.

The head of Ripple said this figure during the Fintech Summit in Dubai. He also added that the United States lags behind the United Arab Emirates and the European Union in digital-asset regulation.

Addressing SEC Chairman Gary Gensler, the Ripple CEO expressed regret about the situation, noting the agency’s unprofessional approach.

One of the main pieces of advice he would give aspiring entrepreneurs is “never start a business in the United States”.

In his view, the Commission should realise that most people working in the crypto space are “honest professionals” who lack a structured set of rules.

The regulator’s and the company’s disputes have been ongoing for more than two years. In December 2020, the SEC filed suit against Ripple, accusing it of selling unregistered securities in the form of XRP to retail investors.

A partner at the law firm Davis Polk and former SEC official Joseph Hall said the regulator had good odds to lose the case on the merits. However, he expressed doubts about a swift end to the proceedings.

In late March 2023 reports emerged that Ripple had good prospects for a favourable conclusion to the lawsuit.

Earlier in April, lawyer Jeremy Hogan stated that XRP is not a security and only “may fit the definition of an investment contract”.