The chief executive of Ripple recently talked about the possible outcomes of its ongoing legal battle with the SEC.
The US Securities and Exchange Commission (SEC) had sued the company over the sale of its XRP token, claiming that it is unregistered security.
Brad Garlinghouse, the CEO of Ripple Labs, talked about the lawsuit that the SEC had filed against the company over its XRP token.
He had the discussion in an interview earlier this month at the Collision 2022 event with Axios. The regulatory authority had filed the lawsuit against the CEO, its co-founder Chris Larsen, and the company back in December 2022.
The allegations were that since the XRP token is unregistered security, its sale offering was illegal. Of course, Ripple disagrees and has continued to fight the legal battle with the SEC.
In the interview, the CEO was asked about the impact of the case outcome turning out to be in favor of the SEC, and XRP is really declared security.
Ripple’s security status
Garlinghouse pointed out quickly that if the lawsuit does not go in their favor, it would only mean that the XRP token is treated as security just in the United States.
The Ripple executive asserted that the jurisdiction of the securities regulator did not extend beyond the United States.
He also added that the XRP token was not available to investors in the US on a variety of platforms. For instance, Coinbase had delisted the token from its platform not long after the SEC had filed its case.
Garlinghouse said that there would not be a lot of change, even if the company were to lose its lawsuit, as Ripple was gaining a lot of popularity with each passing day.
Expecting a win
However, the executive added that he believes the company would be able to emerge victorious against the SEC.
He said that he was betting on a favorable outcome because the facts and the law supports them. He added that the SEC appears to have overstepped.
He asserted that the regulator was just trying to take jurisdictional ownership, so they had decided to use this gray area to do so.
The Ripple executive went on to say that the lengthy process was undoubtedly frustrating. He said that there are a lot of companies and the entire industry that is waiting for the outcome of this case.
Ripple’s legal counsel, Stuart Alderoty, had said in April that a resolution of the case was most likely to happen in 2023.
He had also said that each passing day was hurting investors in the US who had had the rug pulled from beneath them.
The day the SEC filed the lawsuit against Ripple Labs, almost $15 billion had been wiped out from the market cap of the XRP token, which had hurt the investors that the SEC claims to protect.
It is true that the entire industry is following the lawsuit, as they want to see the difference between security and token identified.