It’s been over a year Ripple (XRP) embroiled in a lawsuit with the US Securities and Exchange Commission (SEC). The SEC Says Ripple Was Guilty of Selling XRP Tokens as security, or effect, without having the necessary licenses to do so. Lately, Ripple has been doing good business in the lawsuit. According to Ripple CEO Brad Garlinghouse, things are going better than they expected.
Ripple lawsuit
Lately, Ripple has been scoring win after win in the infamous lawsuit. A few days ago it was announced that the SEC may even have been guilty of a serious conflict of interest† In addition, Judge Sarah Netburn rejected an SEC request to hide certain critical documents. These documents would be about a speech by former SEC director William Hinman, where he would argue that XRP is not a… security is.
On the podium of Paris Blockchain Week on Thursday, Brad Garlinghouse told the audience that Ripple’s defense in the lawsuit is performing above par. He hadn’t expected the ongoing business to go so well for the company.
Live from #PBWS2022, @bgarlinghouse sat down with @cnbc‘s @ryan_browne_ to talk crypto regulation, Ripple’s global traction and use cases that he sees growing across the industry. pic.twitter.com/ouQYhY3B5n
— Ripple (@Ripple) April 14, 2022
“The trial went extremely well, and much better than I could have hoped for when I started it about 15 months ago.”
XRP als security
A verdict in the lawsuit in favor of Ripple is not only good for Ripple, but for the whole, according to Garlinghouse crypto industry. If Ripple loses the case, it could set a legal precedent by which most crypto tokens traded on exchanges are seen as securities.
That would then mean that every crypto exchange in the United States must register as broker† By law, all brokers in the United States would be required to register the identity of token holders. Crypto investors and exchanges are of course not waiting for this and in most cases this is not or hardly possible.
“If you define XRP as an effect of Ripple, we need to know every person who owns XRP. That is a requirement of the SEC. You need to know all your shareholders. That is not possible.”
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