SEC defense will cost Ripple $200 million, according to CEO Brad Garlinghouse
The CEO of Ripple has spoken out about the SEC case, revealing that the company has spent $200 million defending itself, and has lamented the politicization of crypto legislation in the United States.
According to CEO Brad Garlinghouse, Ripple has invested $200 million in the defense of the action launched against it by the US Securities and Exchange Commission (SEC).
During a May 8 fireside talk at the Dubai Fintech Summit, Garlinghouse revealed the number. He added that the United States is stopped in comparison to the regulatory advancement of the United Arab Emirates virtual asset regulatory body and the current Markets in Crypto-Assets (MICA) law in the European Union. He continued by saying that by the time the matter is resolved, Ripple would have spent $200 million protecting itself against a lawsuit that has never made any sense.
Garlinghouse wrote to SEC head Gary Gensler to express his sadness that the United States is lagging so far behind as Ripple expands to the United Arab Emirates. When asked for guidance about starting a business, Garlinghouse often tells hopeful entrepreneurs, “If I were you, I would not start in the United States.” He thinks a lot of American businesses and publicly traded American enterprises would agree with him.
Asked why the United States lacks a coherent crypto regulatory framework, Garlinghouse said the SEC must realize that the great majority of those involved in the crypto and blockchain industries are good actors who wish to abide by the rules of the road but need them specified.
In December 2020, Ripple, a cryptocurrency payment network, was sued by the Securities and Exchange Commission (SEC) on allegations that it had offered XRP tokens as unregistered securities. Ripple has consistently denied the allegation, maintaining that the contract does not meet the Howey test’s definition of an investment agreement. For almost two and a half years, this lawsuit has been a drag on the American economy and stock market.