Ripple CEO has continued to celebrate the company’s resounding victory against the SEC, describing the court’s ruling as an unequivocal win for the US crypto industry.
Brad Garlinghouse, CEO at Ripple, has continued celebrating the recent court ruling, which led to the declaration of XRP as a non-security.
In a tweet today, Garlinghouse said he is still grateful to the Ripple team for its recent victory against the SEC. Garlinghouse described the recent court ruling as an unequivocal win for Ripple and the entire United States crypto industry.
It’s been less than a week since the decision dropped, and I’m still overwhelmed with gratitude for (and hugely proud of) this team.
An unequivocal win for Ripple and for crypto in the US.
That’s the bottom line. https://t.co/l8AixV1xnO
— Brad Garlinghouse (@bgarlinghouse) July 19, 2023
Garlinghouse remarked while reacting to Ripple’s tweet regarding Judge Analisa Torres’ ruling.
A Landmark Victory Over SEC
According to Ripple’s blog post yesterday, the court’s declaration of XRP as a non-security is the company’s landmark victory over the SEC.
It noted that the SEC introduced the case in December 2020 has always been about whether XRP is an investment contract or a security under the law.
“The Court unequivocally said that XRP, as a digital token, is not in and of itself a security. Last week’s ruling makes clear that the SEC’s misguided theory—that crypto tokens standing alone are securities—has no support in the law,” Ripple noted.
Ripple Highlights Other Victories
Furthermore, Ripple highlighted the other victories it recorded against the SEC in the multi-year legal tussle. The blockchain company stated that its XRP sales on exchanges are not securities, adding that the court also found sales by Ripple execs as non-securities.
In addition, Ripple said other XRP distributions to developers, charities, and employees were also declared non-securities by the judge.
A Wake-Up Call for Congress
Commenting on the development, Garlinghouse said the court’s ruling is a significant blow to the SEC’s regulation by enforcement agenda.
Additionally, Garlinghouse hopes the decision will be a turning point for Congress to act and set clear rules for the US crypto industry. US Congressman Mike Flood echoed the same sentiment earlier.
Recall that Judge Torres issued the long-awaited summary judgment decision in the case last week. In her ruling, Judge Torres ruled that XRP itself is not a security.
She also ruled that the token is not a security regarding programmatic sales via digital asset exchanges. However, she found the token a security when offered and sold to institutional investors. According to the judge, Ripple’s past direct XRP sales to institutional clients satisfy the Howey Test factors.
Garlinghouse Says Court’s Ruling Is Not a Split Victory
Judge Torres’ ruling against Ripple regarding the company’s direct past XRP sales to institutional investors has made many view her decision as a split victory.
However, Garlinghouse does not think so, as he asserted that the court’s decision is a complete loss for the SEC.
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