The Ripple vs SEC case has been taking new turns with every hearing! Last week, U.S. Representative Brad Sherman, D-California, jumped into the discussion calling XRP a ‘security’ which led to a new war of words.
Speaking at Collision 2022, with Axios Fintech Reporter Lucin Shen, Ripple CEO Brad Garlinghouse expressed his confidence stating that Ripple will win the case against the U.S. SEC. Garlinghouse said that his confidence comes from the fact that the law support Ripple’s arguments that XRP is not a security. In the interview, the Ripple CEO noted:
I am betting that [Ripple will win the lawsuit] just to be clear. I am betting on that not just because of the tone of the questions from the Judge. I am betting on that because I know the facts are on our side. I am betting on that because the law is on our side.
But Garlinghouse added that the SEC is trying to take every measure to prove XRP a ‘security’. He added:
“The SEC has massively overstepped and they are trying to take jurisdiction ownership over something. I think they saw this gray area [that supports its argument that XRP is a security]and decided to go in”.
The Ripple vs SEC has been going on for 18 months now! New developments have been popping up every week. With some of the latest hearings, it seems that Ripple’s position is strong. Recently, Ripple registered an important win after Judge Sarah Netbrun asked the SEC to surrender the draft of the 2018 Hinman Speech.
What happens if Ripple loses the case?
During the interview, the host asked Garlinghouse what shall happen if Ripple loses the case. The Ripple CEO replied that the company has always been operating like they haven’t won the case. Thus, he means to suggest that nothing will change majorly for Ripple’s operations.
However, soon after the SEC slapped a lawsuit on Ripple in December 2020, several U.S.-based crypto trading platforms decided to delist XRP. This was because most of the exchanges didn’t seek to engage in a legal battle with the SEC.
Adding further, Garlinghouse said: “If Ripple loses the case, does anything change? It is status quo, Ripple is still growing quickly”. The Ripple CEO also added that the Securities and Exchange Commission only has a say in the U.S. However, they will still continue to operate normally in other jurisdictions. Garlinghouse added:
The SEC only has jurisdiction in the United States. In some ways, if you think about how the “WORLD” is operating right now, it’s as if the case has been lost.