The United States Securities and Exchange Commission (SEC) filed a lawsuit against San Francisco-based blockchain firm Ripple in December 2020. The agency alleged that XRP, the digital token that Ripple uses for cross border payments, has been an unregistered security for the past eight years. The SEC also told the court that both CEO Brad Garlinghouse and Executive Chairman Chris Larsen netted millions of dollars from their personal XRP sales.
Interestingly, U.S. Magistrate Judge Sarah Netburn has granted most of Ripple’s motions so far. While it’s still early to say whether this means game over for the SEC’s suit against Ripple, CEO Bradley Garlinghouse is delighted about the progress his company has made in court.
Speaking with Fox Business, Garlinghouse said: “Look, I feel really good about the progress that’s been made in the courts so far.” He continues to deny all of the regulatory agency’s allegations, arguing, among other things, that XRP is similar to bitcoin and ethereum.
Garlinghouse also stated that payment service provider BitPay supporting XRP implies that it is not a security — as it is used as a currency to facilitate money transfers in different government-issued currencies.
Ripple CEO Dismisses SEC’s Harassment Allegations
The SEC v. Ripple case has turned into an actual dogfight — and the battle is far from over. Whether you are a Ripple supporter or a SEC fanboy, all eyes are on the developments of the case as the agency’s latest and biggest enforcement action against a blockchain firm.
As aforementioned, the court has granted several motions filed by Ripple. In one of these motions, Ripple had requested access to certain internal memos and emails from the SEC. However, in a new development, the agency has accused Ripple of harassment, alleging that the payment giant is seeking more information than it is legally allowed to obtain.
During his interview with Fox Business, Garlinghouse vehemently denied claims that a “small company like Ripple” could possibly harass a U.S. regulatory watchdog. He added: “You know, Jay Clayton, under his leadership, decided to bring this lawsuit, and we’re gonna defend ourselves.”
