Garlinghouse Believes SEC Appeal Will Consolidate Judge’s Decision on XRP’s Non-Security Status
Ripple CEO Brad Garlinghouse expressed his confidence in the recent ruling by Judge Torres in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). According to Garlinghouse, the filing of an appeal by the SEC would only serve to strengthen the decision made by Judge Torres that the XRP token is not a security.
The ruling, which was delivered on July 13, brought some relief to Ripple Labs as Judge Torres partially favored the company. The judge stated that XRP is not a security in terms of retail sales on digital asset exchanges. However, she determined that the token does qualify as a security when sold to institutional investors, meeting the criteria outlined in the Howey Test.
In response to the ruling, Garlinghouse appeared unfazed by the portion of the decision that labeled XRP as a security for institutional investors. He downplayed its significance, referring to it as “the smallest piece” of the lawsuit. Instead, he focused on the favorable ruling regarding retail sales, stating that an appeal from the SEC would only further strengthen the position taken by Judge Torres.
Garlinghouse also expressed his belief that it could take a considerable amount of time for the SEC to file an appeal. He stated, “As a matter of law, the law of the land right now is that XRP is not a security. Until there is an opportunity for the SEC to file an appeal, which would take years, frankly we are very optimistic.”
Furthermore, Garlinghouse took the opportunity to criticize the SEC, accusing them of being a “bully” that targets weaker players in the cryptocurrency industry who may not have the resources or capability to mount a robust defense. He highlighted that this was the first time the SEC had lost a case related to cryptocurrencies.
The legal battle between Ripple Labs and the SEC has been closely watched by industry participants and investors. The outcome of this case has implications beyond Ripple, as it could potentially set a precedent for how other cryptocurrencies are regulated in the United States.
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