Ripple CEO Brad Garlinghouse says it is frustrating the SEC has chosen to continue fighting a lost cause.
Ripple CEO Brad Garlinghouse has issued fresh comments on Bloomberg regarding the blockchain company’s ongoing legal tussle with the U.S. SEC.
Ripple CEO Brad Garlinghouse says over 80% of hiring this year will be outside US, where the crypto payments company is embroiled in a long-running legal dispute with the SEC https://t.co/BqKGTRFK95 pic.twitter.com/nZJyMMBvpY
— Bloomberg Crypto (@crypto) September 13, 2023
SEC Seeks Interlocutory Appeal
Recall that the court issued the highly-anticipated summary judgment decision on July 13. As reported, the court found that Ripple’s XRP sales to institutional investors were investment contracts.
Interestingly, the court ruled that Ripple’s programmatic sale of XRP and other distributions were not securities. The court also declared that XRP itself is not a security.
However, the SEC rejected the ruling on Ripple’s programmatic sale of XRP and other distributions. Consequently, it asked the court to certify an interlocutory appeal to challenge the decision.
Garlinghouse Says It’s Frustrating
Commenting on his reaction to SEC’s interlocutory appeal request, Garlinghouse said it is frustrating that the regulator has chosen to continue to fight a lost cause.
“On one hand, it is frustrating that you have a government that has unlimited resources to keep fighting a fight that it has already lost,” Garlinghouse said in an interview today with Bloomberg Television.
He disclosed that Ripple has already spent over $100 million defending the SEC case, adding that the company is optimistic.
Ripple CEO Says It’s Clear XRP Isn’t a Security
Notably, Garlinghouse said the court has already clarified that XRP is not a security. Ripple’s CEO emphasized that the SEC is not seeking to appeal the ruling on XRP’s non-security status.
“The judge has already said very clearly that XRP is not a security. What they have asked permission from the court to appeal isn’t actually whether XRP is a security. [The appeal is] on whether [under] certain circumstances a transaction [will be] an investment contract,” he added.
Furthermore, Galringhouse reiterated he is very optimistic as the law and facts support the company’s defense.
“I am very optimistic…, The facts are on our side, and the law is on our side.”
80% of Ripple Hiring in 2023 Will Be Outside the U.S.
Meanwhile, Garlinghouse stressed that 80% of Ripple’s hiring will be outside the United States this year. Ripple’s decision to hire key personnel outside the United States could be due to the regulatory uncertainty in the country.
During the interview, Garlinghouse pointed out that governments in jurisdictions like Singapore, Dubai, Hong Kong, and the U.K. are partnering with the crypto industry and showing leadership.
“[…] They’re providing clear rules, and you’re seeing growth,” he said.
Conversely, the U.S. is lagging behind in terms of providing clear rules for crypto. Reacting, Garlinghouse speculated that the U.S. Congress could weigh into the country’s regulatory uncertainty for the crypto sector in the future.