Ripple lawsuit nearing the end
Is the SEC’s Ripple lawsuit finally coming to an end? Brad Garlinghouse, CEO of the crypto company is convinced of it. However, the fight is not over yet.
Ripple lawsuit nearing the end?
After two and a half years of litigation, the Ripple lawsuit is now really nearing its end. At least Ripple CEO Brad Garlinghouse is convinced of that. In December 2020, the US Securities and Exchange Commission filed charges against the XRP issuer. The accusation: selling illegal securities.
The dispute between Ripple and the SEC is considered one of the most important within the crypto industry. If the US authorities are successful with their accusation, the consequences for the industry could be drastic. Many companies would face regulatory conflicts.
Garlinghouse comments on the case in a video. He implies that an end to the lawsuit is finally in sight. The way there was difficult. Even if Ripple ends up victorious in court, the entire conflict between the US authority and the crypto industry is not over.
“A few days ago, after two years of effort and seven court orders, the infamous Hinman documents were finally released. We had to pay more than $100 million in legal fees for this.” Like Garlinghouse.
The Hinman filings disclose internal SEC communications. In it, leading employees of the authority discuss the authority’s course towards the crypto industry and cryptocurrencies.
William Hinman, in his well-known 2018 speech, suggested that cryptocurrencies could be considered securities if their decentralization was not sufficient. However, there are no precise criteria for this assessment. He called Ethereum sufficiently decentralized to be a commodity rather than a security.
That is why the Ripple CEO is convinced of the imminent victory
The Hinman documents are the reason the Ripple CEO is confident of an imminent victory over the SEC. He sees them as evidence that William “Bill” Hinman was deliberately trying to create confusion.
“At best, the documents show that SEC officials could not agree on an interpretation of underlying statutes.” Explains the CEO of the XRP issuer.
According to Garlinghouse, colleagues whom Hinman consulted in the run-up to his 2018 speech expressed strong criticism of Hinman’s approach: His comments would only create unnecessary chaos.
“At its worst, it shows Hinman knowingly flouting the law. Then he tried to create new laws – something only Congress can do.” Run Garlinghouse.
Garlinghouse believes a financial interest motivated Hinman to speak. As a result, Hinman’s own law firm paid him millions of dollars.
Many outside experts are not convinced of the importance of the Hinman documents . They believe these are irrelevant to the lawsuit and Ripple’s hopes overblown.
Garlinghouse Warns Crypto Industry Against SEC
Brad Garlinghouse warns the crypto industry about the SEC. The Ripple case is not a special case, but only shows that the US authorities want to fight the industry bit by bit.
“This is not about a specific token or blockchain. The case only shows how ruthlessly the SEC is willing to crack down on crypto companies. Meanwhile, you feign interest in working together.”
Garlinghouse himself met on a number of occasions with Hinman and former SEC agency chief Jay Clayton. Talks were held together for years without the SEC ever pointing out any legal violations. The authority then used the transparency provided by Ripple in a sudden indictment against the company.
With more recent lawsuits, particularly unfolding since February 2023, Garlinghouse says it is clear that the SEC is attempting to gain regulatory jurisdiction over the crypto industry.
