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Ripple CEO has oozed confidence in winning the court case against the SEC

Ripple CEO Brad Garlinghouse was confident of winning his case before the Securities and Exchange Commission (SEC). Speaking at the Paris Blockchain week event, Garlinghouse told attendees that their protection has been “exceedingly better” than he expected.

Ripple continues to exude confidence of scoring major win against the SEC

He also added that winning the XRP lawsuit would set a good precedent for cryptocurrencies and exchanges that have been subject to some adverse regulations brought by the SEC.

The lawsuit, filed 15 months ago, alleges that Ripple, Garlinghouse, and the company’s Executive Chairman, Chris Larsen, engaged in illegal activity by carrying out a $1.3 billion worth of unregistered securities.

The SEC applies the Howey Test obtained by the supreme court decision. This lawsuit seeks to draw the line between an “investment contract” and what qualifies as “investment security.”

According to the SEC, XRP coins were sold without registration with the regulator. However, Garlinghouse and the company have argued in defense that XRP acts as a virtual currency like Ethereum and that Bitcoin is not registered and recognized as a security. Their defense team added that XRP should be treated as a virtual currency rather than an investment contract.

Garlinghouse also stated that a bad precedent would be set for the crypto world if they lose the case in the above reiteration.

“This case is important, not just for Ripple; it’s important for the entire crypto industry in the United States. It would be negative for crypto in the United States.”

This model essentially means that exchanges offering XRP will be forced to register with the SEC as security brokers. This will oblige every XRP token holder to register and be personally known to the SEC.

Earlier last week, Ripple took home an essential issue raised in the proceedings. The U.S. Securities and Exchange Commission’s (SEC) request to review the deliberative process privilege (DPP) was rejected by a federal judge. The court ruling has been seen as a major victory for Ripple in its long battle with the regulator.

These winning streaks have kept the company elated and confident about its success in the main suit. A win for Ripple would be welcome news for cryptocurrencies facing a wall of uncertainty.

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