Ripple CEO Garlinghouse speaks up on SEC complaint against XRP. Brad Garlinghouse, CEO of Ripple, commented on the latest regulatory lawsuit against XRP, assuring shareholders that the company will prove their case to the court. In a Dec. 22 blog post, Garlinghouse asserted that the legal action brought by the United States Securities and Exchange Commission against the XRP cryptocurrency is a “assault on crypto at large.”
The executive is confident that the regulatory action will have a “snowball effect” on the industry as a whole, potentially affecting major players like Coinbase and all other cryptocurrencies, not just Bitcoin (BTC) and Ether (ETH) “Ripple, Chris and I may be the ones named in the filing, but this is an assault on crypto at large. In this case, XRP is a proxy for every other ‘alt-coin’ in the space. From there, you have a snowball effect; this isn’t good news for any market maker, exchanges like Coinbase, etc. This sets a terrible industry-wide precedent for any company working with a digital asset.”
Garlinghouse continued to say that the SEC is “engaged in an all-out attack on the crypto industry,” despite the regulator claiming that it is committed to fostering innovation in the digital asset space.
Ripple however, will prove their case in the court, Garlinghouse assured. The CEO emphasized that XRP is not an “investment contract” as holders have no connection or relationship with Ripple. Garlinghouse also stressed that the market value of XRP is not correlated with Ripple’s activities unlike securities. “We are not only on the right side of the law, but we will be on the right side of history,” Garlinghouse stated.
The CEO also noted that the SEC’s action further urges Ripple to move its headquarters outside the U.S. However, the organisation says it also looks forward to working with the new government to find a solution. As previously reported, Japan is the primary nominee for the new headquarters of Ripple. At the beginning of December, Garlinghouse reported that U.S. investors accounted for just 5% of Ripple’s global customers.
On Dec. 22, the SEC filed a lawsuit with the federal district court in Manhattan claiming that XRP was a security firm and accused Ripple of breaching the laws by collecting more than $1.3 billion. Subsequently, some industry players reported that they would make no effort to resist the decision of the SEC to consider XRP a security. XRP tumbled 21% on December 22 amid reports on the upcoming legal battle against Ripple.