Ripple Labs recently concluded its flagship Swell conference in Dubai. Ripple CEO Brad Garlinghouse took the stage to address questions about their ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) regarding the status of Ripple’s XRP token. However, XRP has managed to get some elevation as Ripple registered multiple positive decisions in their favor from the court.
Ripple CEO slams US SEC
In an interview with CNBC, Brad Garlinghouse highlighted three consecutive victories over the SEC. He began with a judgment from July 13th, affirming that XRP is not a security. The circuit court has denied the SEC’s request for an interlocutory appeal. The charges against Chris Larsen and Garlinghouse were also dismissed with prejudice.
Garlinghouse highlighted the concern over the SEC’s repetitive approach compared to the definition of insanity. He added that the SEC’s regulation through enforcement strategy needs reevaluation. Notably, he pointed to a recent federal judge’s criticism of the commission’s handling of a Bitcoin (BTC) ETF case involving Grayscale, stating that the SEC is “arbitrary and capricious.”
Are investors at risk?
Ripple CEO stated that the SEC has lost sight of their mission to protect investors. He added that the industry needs regulatory clarity. Macro, exponential forces will continue to catapult this industry, said Garlinghouse.
Discussing the next steps in Ripple’s case, he noted that Thursday marks the deadline for the briefing schedule for remedies. Garlinghouse welcomed the court’s decision on remedies, expressing optimism about a positive outcome for the entire crypto industry. However, the SEC seeks approximately $770 million in disgorgement.
According to Garlinghouse, the SEC needs to reconsider its mission to protect investors. He questioned whom the commission is truly safeguarding by its enforcement actions. He sees the recent developments as a positive step for the industry as a whole and anticipates a thawing of regulatory challenges in the United States.
Ripple CEO addressed the buzz around potential spot Bitcoin ETF approval. He acknowledged the impact it could have on capital inflows. However, he also expressed uncertainty about balancing such factors against macroeconomic considerations. Garlinghouse still believes in the importance of regulatory clarity and utility at scale for the industry’s sustained growth.