Ripple CEO Brad Garlinghouse has revealed that the company has spent $200 million defending itself against a lawsuit brought by the US Securities and Exchange Commission (SEC).
He made the comments during a fireside chat at the Dubai Fintech Summit on May 8, where he also expressed his frustration with the regulatory environment in the US, which he said is falling behind other countries. Garlinghouse cited the regulatory progress of the United Arab Emirates and the recent Markets in Crypto-Assets (MICA) bill in the European Union as examples of more advanced regulatory frameworks.
Garlinghouse expressed regret that the US is falling behind, saying that the tough thing about the situation is having a country that has put politics ahead of policy. He also said that if he were advising entrepreneurs looking to start a company, he would recommend against starting in the US. He believes that many US-based companies and US public companies would agree.
Ripples CEO take on the US crypto regulatory framework
Garlinghouse stressed the need for a clear regulatory framework for crypto, saying that the SEC must understand that the vast majority of people working in crypto and blockchain are good actors who want to stay within the rules of the road but need them defined. He also said that the case against Ripple doesn’t make a lot of sense and that by the time the case is decided, Ripple will have spent $200 million defending itself.
A decision in the case is expected from the judge sometime in the next three to six months, according to Garlinghouse. In the meantime, Ripple is expanding to the United Arab Emirates, where the regulatory environment is seen as more favorable. Garlinghouse’s comments highlight the challenges facing the crypto industry in the US, where regulatory uncertainty and legal battles are creating headwinds for innovation and growth
The case against Ripple was brought by the SEC in December 2020, which claimed that the company illegally sold XRP tokens as an unregistered security. Ripple has consistently disputed the claim, arguing that XRP does not constitute an investment contract under the Howey test. The case has been ongoing for two and a half years, creating headwinds in the US market.
