Ripple CEO: SEC will need "years" to appeal the court's decision
Date: 2023-07-17 Author: Karina Ziganova Categories: BUSINESS
Ripple CEO Brad Garlinghouse believes that it may take "years" for the US Securities and Exchange Commission (SEC) before it can appeal the court's decision to recognize the XRP token as a security. He stated this in an interview with Bloomberg.
In his opinion, if the SEC appealed the ruling on retail sales, it would only further strengthen the court's decision. However, it is likely that it will take some time before the regulator can appeal.
"Right now, the law is that XRP is not a security. Until the SEC has the opportunity to appeal, which, frankly, will take years, we are very optimistic," Garlinghouse admitted.
At the same time, the head of Ripple stressed that this is the first time that the SEC has lost the "crypto case". And this loss was a turning point - many crypto companies in the United States waited to "see what happens."
The SEC has sown confusion
Garlinghouse believes that the Commission has "sown confusion" in the market by creating regulatory uncertainty.
"They knew there was confusion and they did do things that they thought would only add to the confusion," he said.
However, the head of Ripple from the very beginning of the trial was confident of victory. He explained that this confusion was actually "disguised as a force" for the SEC, thereby hindering innovation in the United States.
"The SEC is trying to establish power and its rules over what is actually sound policy and sets clear rules of conduct," he stated, adding that this has made it difficult for entrepreneurs and investors to participate in the US crypto market and the blockchain industry.
Ripple's victory
On July 13, U.S. District Judge Analysis Torres ruled that Ripple did not violate federal securities laws by selling XRP on crypto exchanges. This step was regarded as a victory for the company over the regulator.
However, the verdict was not an unequivocal victory for Ripple. The judge also stated that XRP sales to institutional investors can still be classified as securities transactions. At the same time, despite the ambiguity of the decision, the leaders of Ripple - in particular, Garlinghouse - regarded it as a step in the right direction.
