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I am betting that Ripple will win the lawsuit against the SEC, Garlinghouse says.
Brad Garlinghouse, CEO of Ripple, discussed a number of crypto-related topics with Axios Fintech Reporter Lucin Shen at Collision 2022.
Garlinghouse spoke about an essential topic: the ongoing lawsuit between Ripple and the Securities and Exchange Commission (SEC).
Ripple CEO said he is optimistic that the blockchain company will be victorious in the lawsuit. According to Garlinghouse, his confidence stems from the fact that the law and other facts support the company’s argument that XRP is not a security.
“I am betting that [Ripple will win the lawsuit] just to be clear. I am betting on that not just because of the tone of the questions from the Judge. I am betting on that because I know the facts are on our side. I am betting on that because the law is on our side,” Garlinghouse was quoted as saying in the interview.
SEC Thinks Otherwise
However, the SEC is still pushing the case to ensure Ripple’s XRP is classed as a security, Garlinghouse said.
“The SEC has massively overstepped and they are trying to take jurisdiction ownership over something. I think they saw this gray area [that supports its argument that XRP is a security] and decided to go in,” Garlinghouse added.
Garlinghouse: Nothing Will Change If Ripple Loses the Case
Shen further asked Garlinghouse what would happen if Ripple did not win the lawsuit. Garlinghouse noted that the company has been operating like it has already lost the lawsuit.
Moments after Ripple was charged, U.S.-based trading platforms halted XRP trading as they feared that the SEC may come after them for facilitating the exchange of the asset class.
“If Ripple loses the case, does anything change? It is status quo, Ripple is still growing quickly,” he said.
Garlinghouse said the Securities and Exchange Commission only has control in the United States, which has had a toll on XRP trading in the country.
At the moment, the “world” is operating as if Ripple has lost the lawsuit, whereas that is not the case, he added. U.S.-based exchanges, including Coinbase, halted support for XRP immediately after Ripple was charged, forcing the price of the coin to plummet massively.
“The SEC only has jurisdiction in the United States. In some ways, if you think about how the “WORLD” is operating right now, it’s as if the case has been lost.”
Things Going In Ripple’s Favor
The lawsuit, which has continued to linger for more than a year, is considered the biggest legal battle involving the SEC that has ever occurred in the cryptocurrency industry.
New developments are being released on a weekly basis that has gone in Ripple’s favor. This month, Ripple recorded a major win after Judge Sarah Netburn ordered the SEC to surrender the draft of William Hinman’s 2018 speech.
The blockchain company believes the draft speech would aid its Fair Notice Defense that XRP is not a security.
However, the SEC is unwilling to surrender Hinman’s documents to Ripple as it is preparing to oppose the order issued by Magistrate Netburn.