Brad Garlinghouse, CEO of Ripple Labs, believes the U.S. Securities and Exchange Commission will face a lengthy appeals process if it chooses to challenge the recent court ruling in the Ripple vs SEC lawsuit.
The Recent Court Ruling
On July 13, Judge Analisa Torres issued a partial ruling in the SEC’s case against Ripple, finding that XRP is not a security when sold on cryptocurrency exchanges.
However, Judge Torres ruled that XRP sales to institutional investors were investment contracts and thus securities under the Howey test.
Garlinghouse’s Take on an Appeal
In an interview with Bloomberg, Garlinghouse downplayed the significance of the institutional sales decision, calling it the least consequential part of the lawsuit.
Garlinghouse believes that if the SEC appeals the ruling on retail XRP sales, it would further cement Judge Torres’ finding that XRP is not a security in that context.
He noted that the current legal stance is that XRP is not a security and expressed optimism that any SEC appeal would be a lengthy process taking years.
Criticism of the SEC
Garlinghouse criticized the SEC for targeting companies like Ripple that lacked the resources for a robust legal defense. He described the regulator as a “bully.”
Many US crypto exchanges delisted XRP at the start of the SEC lawsuit due to uncertainty. Though some have started relisting XRP following the recent ruling.
Garlinghouse accused the SEC of intentionally creating confusion to assert its power and hinder innovation in the US. He said the SEC prioritizes power and politics over sound policy and clear regulations.
Positive Outlook But Calls for Reform
Despite his positive outlook in light of the court ruling, Garlinghouse called for a shift towards clear and supportive regulations to foster a thriving crypto industry in the US.
He sees the ruling as a significant milestone for Ripple but notes that protracted legal battles with the SEC hamper growth and participation in the crypto market.
In conclusion, while Garlinghouse is encouraged by the court’s XRP decision, he believes it highlights the need for the SEC to provide clearer guidance on crypto assets.
An extended legal battle would only add uncertainty and prevent the industry from achieving its full potential in the US. Transparency and coherence in regulations will be crucial going forward.
This article is based on the original news published on Crypto Intelligence.