Ripple CEO Anticipates Prolonged Process for SEC Appeal on Favorable Ruling

In a recent interview with Bloomberg, Ripple CEO Brad Garlinghouse expressed his belief that the United States Securities and Exchange Commission (SEC) will face a lengthy process before having the opportunity to appeal Judge Torres’ favorable ruling in the case against Ripple. On July 13, Judge Torres ruled in favor of Ripple Labs to some extent, stating that the XRP token is not a security when it comes to retail sales on digital asset exchanges. However, Judge Torres ruled that XRP can be considered a security when sold to institutional investors, meeting the criteria set in the Howey Test.

Garlinghouse dismissed the significance of the institutional sales decision, referring to it as “the smallest piece” of the lawsuit. He further argued that if the SEC were to appeal against the retail sales ruling, it would only “further” solidify Judge Torres’ decision. As a result, Garlinghouse believes it could be a long time before the SEC is able to file an appeal. He stated, “As a matter of law, the law of the land right now is that XRP is not a security. Until there is an opportunity for the SEC to file an appeal, which would take years, frankly we are very optimistic.”

Garlinghouse emphasized that this case marks the first time the SEC has lost a “crypto case.” He criticized the SEC for targeting “weak players” in the crypto industry who were unable to mount a proper defense. Garlinghouse also mentioned that when the case against Ripple was initially filed, many crypto exchanges in the U.S. adopted a wait-and-see approach due to the uncertainty surrounding the outcome.

According to Garlinghouse, the SEC intentionally caused confusion in the market, hindering innovation. He asserted that the SEC prioritizes power and politics over establishing clear rules and sound policy, which in turn makes it difficult for entrepreneurs and investors to participate in the crypto market and blockchain technologies.

In conclusion, Ripple CEO Brad Garlinghouse anticipates a prolonged process for the SEC to file an appeal against Judge Torres’ favorable ruling in the case against Ripple. The ruling stated that XRP is not a security for retail sales on digital asset exchanges, but is considered a security when sold to institutional investors. Garlinghouse believes that the SEC’s actions have caused confusion and hindered innovation in the U.S. crypto market.