• Ripple Labs has been sued by the U.S. Securities and Exchange Commission (SEC) for allegedly selling XRP as an unregistered security.
• Ripple CEO Brad Garlinghouse believes the case will be resolved within weeks rather than months due to William Hinman’s speech declaring Ethereum (ETH) a non-security.
• The lack of clear regulations in the US have prompted many industry players to relocate or outsource operations.
Ripple Sued by SEC
In December 2020, Ripple Labs was sued by the U.S. Securities and Exchange Commission (SEC) for allegedly selling XRP as an unregistered security.
Brad Garlinghouse Expects Court Decision Within Weeks
Ripple CEO Brad Garlinghouse expressed his belief that Ripple’s success in the ongoing lawsuit will have significant implications for the cryptocurrency industry as a whole during an interview with Tai Panich, the CEO of SCB 10X, a technology investment firm. Based on recent developments relating to the SEC’s former Director of Corporate Finance William Hinman and his speech declaring Ethereum (ETH) a non-security, Garlinghouse says he expects a court decision in weeks, rather than months.
Ripple Committed to Fight
The Ripple CEO remains committed to completing the fight but acknowledges that the ongoing conflict with the SEC and the absence of clear regulations in the US have resulted in many industry players relocating or outsourcing operations.
Implications for Crypto Industry
Garlinghouse believes that if Ripple is successful in its court battle it will provide clarity for other companies operating in crypto space who are facing similar issues with their token classification under securities law.
Relocation & Outsourcing
Due to lack of regulatory clarity from government authorities like SEC, entrepreneurs are increasingly looking outside United States borders for opportunities while companies like Ripple have shifted most of their hiring outside US and customers mostly based overseas too