Ripple CEO Garlinghouse responds to SEC criticism towards XRP
Brad Garlinghouse, CEO of Ripple, has responded to the recent complaint against XRP, assuring shareholders that the company will prove their case in court. In a December 22 blog post, Garlinghouse argued that the US Securities and Exchange Commission lawsuit against the XRP cryptocurrency was an “attack on crypto as a whole.”
The executive is confident that the regulatory measure will have a “snowball effect” across the industry, potentially affecting key players like Coinbase and all other cryptocurrencies, not just Bitcoin (BTC) and Ether (ETH):
“Ripple, Chris, and I may be the ones named on the file, but this is an attack on crypto in general. In this case, XRP is a proxy for every other “alt-coin” in the room. From there you have a snowball effect; This is not good news for market makers, exchanges like Coinbase, etc. This is a terrible precedent for any company working with a digital asset. “
Garlinghouse went on to say that the SEC “is carrying out a sweeping attack on the crypto industry” despite the regulator claiming it is determined to encourage innovation in digital assets.
But Ripple will prove their case in court, Garlinghouse assured. The CEO emphasized that XRP is not an “investment contract” as the owners have no affiliation or relationship with Ripple. Garlinghouse also emphasized that, unlike securities, the market value of XRP is not correlated with Ripple’s activities. “Not only are we on the right side of the law, we’re on the right side of history,” said Garlinghouse.
The CEO also noted that the SEC’s action continues to push Ripple to relocate its headquarters outside of the United States. However, the company continues to look forward to working with the new government to find a solution. As previously reported, Japan is a prime candidate for Ripple’s new headquarters. In early December, Garlinghouse stated that US investors make up only 5% of Ripple’s global customers.
On December 22nd, the SEC filed a complaint in Manhattan federal district court alleging XRP was a security and accusing Ripple of breaking the law by raising over $ 1.3 billion. Some industry players later claimed they would make no effort to resist the SEC’s decision to consider XRP a security.
Amid reports of upcoming legal action against Ripple, XRP fell 21% on December 22nd. At the time of writing, XRP is down 22% in the past 24 hours, trading at around $ 0.35.