Ripple trial continues: Ripple wants to take action against SEC lawsuit

• SEC appeals: U-turn in argument
• Striving for transparency: Ripple sees itself as a pioneer for the crypto industry
• Talks in Washington: Ripple continues to demand “regulatory clarity”

After Ripple achieved partial success in court in the legal dispute with the US Securities and Exchange Commission that has been ongoing since 2020, Ripple CEO Brad Garlinghouse repeated his criticism of the SEC and its boss Gary-Gensler. The SEC’s allegations against crypto companies like Ripple are a “misguided” campaign designed to expand the political power of the US Securities and Exchange Commission.

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However, the SEC has since filed an appeal in the legal dispute over whether XRP is a security or not. In its grounds of appeal filed with the U.S. District Court in southern New York, the Securities and Exchange Commission argues that there are “tricky legal issues” surrounding the application of applicable laws, particularly the Howey test. The supervisory authority is thus making a hundred and eighty degree turn in its argument, as it had always insisted during the trial that the laws were clear. Now the SEC speaks of a “grey area”.

Transparent and serious: Ripple sees itself as a regulated financial service provider

Brad Garlinghouse repeatedly emphasized in interviews that his company had always strived for transparency in the past. Ripple had published quarterly reports – although as a private company it was not obliged to do so. Since these were used by the SEC in the lawsuit against the company, Ripple will design the reports differently in the future. But the fundamental goal remains: “to be transparent and to raise the bar for transparency in the crypto industry as a whole.”

In an interview with CNBC, Ripple President Monica Long also said that she wanted to fight the legal dispute “to the end”. Long refers to the stage victory over the summer when she said: “We also got clarity in this litigation. And the judge’s order in this case clearly states that XRP in and of itself is not a security, which opens the door for us to to really expand our business – not just in the US, but even worldwide.” After all, Ripple has always engaged with policymakers and regulators, it’s simply part of Ripple’s DNA, Long said.

In the press release about the court ruling in the summer, Brad Garlinghouse highlighted the importance of the court decision for the entire crypto industry and the seriousness of crypto companies like Ripple. “We have said since the first days of the lawsuit that Ripple would be on the right side of the law and on the right side of history. Progress is worth fighting for. This decision is a significant blow to the agency’s agenda Regulation through enforcement, and I hope we will soon look back on this decision as a turning point for Congress to act and set clear rules for cryptocurrency in the US.”

“Regulatory Clarity”: Conversations in Washington

In Washington, Brad Garlinghouse and other Ripple executives sought talks with politicians and US congressmen. As BeInCypto reports, during the visit on September 19th, among other things, the bipartisan draft for a crypto law, the “Lummis-Gillibrand Act”, was discussed. Brad Garlinghouse commented on

In addition to photos with the congressmen, the Ripple boss also posted a photo on

Had to take a picture in front of the @SECGov building while in town. (in case you’re wondering…no, Chair Gensler did not invite us in) pic.twitter.com/qfbfU7PrGQ

-Brad Garlinghouse (@bgarlinghouse) September 19, 2023

Garlinghouse ironically commented on the image, “We had to take a photo in front of the SEC building while we were in town,” and in parenthesis, “In case you’re wondering…no, Chairman Gensler didn’t invite us in.”

It remains to be seen how the dispute between Ripple and the SEC will continue. Coinbase and Binance are also currently fighting crucial questions for crypto regulation in court. Meanwhile, more and more crypto companies are threatening to move out of the USA due to a lack of regulatory security and the US Securities and Exchange Commission’s crackdown.

Editorial team finanzen.net

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