Ripple Has Spent $200 Million In A Tense Battle With The SEC

Key Points:

• Ripple CEO Brad Garlinghouse claimed that it would have cost the company about $200 million to defend itself in the SEC complaint.
• He said that the US administration prioritizes politics above policy.
• After FTX’s demise, the SEC has taken action against some of the industry’s major participants for violating federal securities laws.

Ripple’s legal fight with the Securities and Exchange Commission (SEC) is expected to cost the company approximately $200 million, according to Cointelegraph, quoting Ripple CEO Brad Garlinghouse.

Garlinghouse revealed the data on May 8 during a fireside discussion at the Dubai Fintech Conference. He said that the United States is lagging behind the United Arab Emirates (UAE) virtual asset regulating body and the European Union’s (EU) recent Markets in Crypto-Assets (MiCA) law.

According to Garlinghouse, the United States lags behind other nations in terms of crypto legislation. Moreover, he said that the US administration prioritizes politics over policy. On the other hand, he praised the UAE and the EU for their efforts in developing a cryptocurrency regulatory framework.

He went on to say that by the time the case is resolved, Ripple would have spent $200 million defending itself against a lawsuit that, from the start, makes no sense.

He said that every time he is contacted by crypto entrepreneurs seeking assistance, he advises them not to begin in the United States. Although this is his opinion, he feels that numerous other US-based corporations and public companies would agree. Garlinghouse has already talked extensively about the necessity for crypto regulation.

When questioned about the need for a clear regulatory framework for crypto in the United States, Garlinghouse said that the SEC must recognize that the great majority of individuals working in crypto and blockchain are good actors who want to follow the laws but need them established.

With the collapse of cryptocurrency exchange FTX last year, the SEC has pressed down on some of the industry’s top players for violating federal securities rules, but it has lately backed off from formally defining digital assets.

Ripple and several of its officials were sued by the Securities and Exchange Commission in 2020 for the unregistered selling of XRP coins valued at around $1.3 billion. The company established its regional headquarters in Dubai in the same year. Ripple has traditionally avoided XRP, which drives several of the company’s products.

Ripple’s SEC action is still underway, with a final decision likely within the next three to six months. With multiple additional pieces of evidence coming, it seems that the chances are already in Ripple’s favor.

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Harold

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