Ripple’s CEO, Brad Garlinghouse, responded to the community’s concerns over the SEC’s $ 1.3 billion lawsuit against the firm.
I’m not going to litigate the SEC’s unproven allegations on Twitter, and as you can imagine, there are new considerations to what can / should be said publicly after the litigation process starts. However, I would like to address 5 key questions I’ve seen. 1/10
— Brad Garlinghouse (@bgarlinghouse) January 7, 2021
5 essential questions
The CEO vehemently denied the “unsubstantiated claims of the SEC” in a Twitter header he described as “5 essential questions” and claimed his company was “on the right side of facts and history”.
Garlinghouse also said Ripple will continue to work towards a deal with the SEC:
“Know that we are trying this out and will continue to deal with the new management so that the XRP community can continue to innovate, consumers are protected and regular markets must be protected.”
In December, the SEC filed a $ 1.38 billion lawsuit against Ripple, Garlinghouse and co-founder Chris Larsen for the sale of XRP as unregistered securities. More than 25 platforms, including Coinbase, Bittrex, OKCoin, and Bitstamp, have suspended XRP trading or removed the token from the platform.
Outside the usa
Garlinghouse did not directly address whether Ripple is paying for exchanges to list XRP, but said it is one of the most liquid digital assets in the world, with 95% being bought and sold outside the US.
Garlinghouse said he was disappointed that Tetragon, one of the company’s biggest investors and owned 1.5% of the company, filed a related lawsuit, but claimed that the company’s other investors still believed in Ripple.
Garlinghouse added that Ripple is currently preparing its response to its lawsuit in weeks, and Ripple’s General Counsel, Stuart Alderoty, will provide more information.
Expectations regarding the law
Ripple CEO said he is more optimistic about the chances of proper regulation in 2021 and expects the Digital Commodity Exchange Act to be re-enforced:
“In the US, we have moved to regulatory chaos stemming from a lack of regulatory clarity. Therefore, regulation through sanctions is a very bad public policy. With the new management, we expect DCEA to be used again. The law will also be a common sense law that provides clarity to the entire industry. ”
Note that the SEC case comes after the institution’s victory in the Telegram and Kik cases.