Brad Garlinghouse: SEC’s Appeal in Ripple Case Could Take ‘Years’

Ripple CEO Brad Garlinghouse anticipates that the United States Securities and Exchange Commission (SEC) will face a protracted process before being able to appeal Judge Torres’ favorable ruling in the case against Ripple.

Judge Torres recently ruled partially in favor of Ripple Labs, declaring that the XRP token is not a security when it comes to retail sales on digital asset exchanges. However, the judge ruled that XRP qualifies as a security for institutional investors based on the conditions outlined in the Howey Test.

In an interview with Bloomberg on July 15, Garlinghouse downplayed the significance of the ruling regarding institutional sales and suggested that if the SEC were to appeal the retail sales ruling, it would only strengthen Judge Torres’ decision. However, Garlinghouse believes it could be quite some time before the SEC is able to file an appeal.

“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,” Garlinghouse stated.

Garlinghouse highlighted that this marks the first time the SEC has lost a crypto case and criticized the agency for targeting players in the crypto industry who were unable to mount a proper defense.

He also pointed out that the uncertainty surrounding the case led many U.S. crypto exchanges to adopt a wait-and-see approach, resulting in the delisting of XRP from platforms like Coinbase and Kraken.

Garlinghouse accused the SEC of intentionally sowing confusion in the market and hindering innovation within the United States. He argued that the agency’s actions have created a challenging environment for entrepreneurs and investors, making it difficult to participate in the U.S. crypto market and blockchain industry.

Overall, Garlinghouse emphasized the need for clear rules and policies in order to foster a thriving and innovative crypto ecosystem in the country.

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