Ripple Wins Partial Victory in SEC Lawsuit: CEO Slams SEC’s Attempt at Shared Victory
“Complete Win Ripple”
Ripple (XRP) recently achieved a significant, though not complete, victory in its legal battle against the Securities and Exchange Commission (SEC). Ripple CEO, Brad Garlinghouse, strongly disagrees with the SEC’s characterization of it as a shared victory and calls it “pathetic.”
Charles Gasparino’s View
The outcome of the lawsuit has sparked differing opinions among analysts and reporters. Charles Gasparino, a reporter for Fox News, suggests that the result was a draw. In response, Brad Garlinghouse reaches out to Gasparino on Twitter, offering to explain the case in greater detail.
“Charlie, happy to come into the studio any time to discuss the facts. Any attempt by the SEC to paint this as some sort of split victory is pathetic. They lost on everything that matters (as many lawyers have noted, not just Ripple’s).”
— Brad Garlinghouse (@bgarlinghouse) July 15, 2023
Garlinghouse strongly asserts that the SEC’s claims of a shared victory are baseless, and notes that legal experts have supported Ripple’s position. The lawsuit revolves around the classification of XRP and whether it should be considered an investment contract under US securities laws. Garlinghouse reaffirms that regardless of any potential fines imposed on Ripple, the real victory lies in establishing the securities status of XRP.
“To your question here about possible fines – that’s for the court to decide, not the SEC. You know very well that this case was never about fines or penalties, but about establishing the securities status of XRP. We have won. They have lost.”
The Ongoing Uncertainty
Despite the courtroom victory, there remain differing interpretations of XRP’s status as a security. Coinbase, one of the leading cryptocurrency exchanges currently facing its own legal battle with the SEC, disagrees with the notion that XRP can be classified as a security selectively:
“Don’t be fooled that Judge Torres ruled that XRP is sometimes an asset and sometimes not. This is the exact opposite of her statement: XRP itself is NEVER a security. Page 15: ‘XRP, as a digital token, is not itself a contract, transaction, or scheme that satisfies the Howey requirement of an investment contract’.”
Aldus Grewal, Coinbase’s top legal counsel, emphasizes that the Howey Test, which determines the classification of an asset as a security, clearly suggests that XRP doesn’t meet the criteria. The judge ruled that secondary sales of XRP did not fall under SEC oversight based on this test. However, it is worth noting that the SEC plans to challenge this ruling on appeal.
In conclusion, Ripple’s recent win in the lawsuit against the SEC has been regarded as a notable victory within the crypto community. Despite the ongoing uncertainty surrounding XRP’s classification, Ripple’s CEO and legal experts are optimistic that this outcome reinforces the legitimacy of the cryptocurrency.