Ripple CEO Brad Garlinghouse claims the cost of his company’s litigation against the Securities and Exchange Commission (SEC) would be in the nine figures.
In an interview with Ryan Selkis, CEO of crypto analytics business Messari, Garlinghouse claims that Ripple Labs is representing the whole industry by going up against the SEC.
The SEC sued Ripple Labs in late 2020 for allegedly releasing XRP as unregistered securities, a lawsuit that has ramifications for the rest of the digital asset market. The SEC’s activities, according to CEO Brad Garlinghouse, are raging:
“Now I do think the SEC has been a bit of a bully in the whole industry. We will spend – and I’ve publicly already shared this – well into the over $100 million defending ourselves against the SEC. And there are not a lot of projects that can actually afford.
I mean the companies that can afford to do that, it’s not a long list. And so I do think it’s not just important for Ripple, it’s important for the industry that somebody kind of stand up to this.”
Garlinghouse believes it is inappropriate to create a precedent in which SEC head Gary Gensler can deem any digital asset an unregistered securities at his discretion:
“This is a federal government agency that works for us. It’s part of the government, we should feel outraged, like the idea that now everything under Gary Gensler’s view is a security is crazy talk.”
One silver lining of Ripple’s lawsuit, according to the crypto millionaire, is that it is pushing the crypto sector to really consider the scope of the SEC’s power over the industry.
“I do think the SEC has kind of gone ‘coo-coo for coco puffs’ and I do think in some positive way it’s catalyzing all of us to write to our legislatures to donate to people we want to get elected and I think maybe the pendulum may swing a little bit to a smackdown to the SEC.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu