Ripple Has Spent $200 Million To Defend Against SEC: CEO

Paigambar Mohan Raj
Source: Coinpedia

According to CEO Brad Garlinghouse, Ripple has spent $200 million defending itself in the lawsuit filed by the SEC (Securities and Exchange Commission). Garlinghouse unveiled the number at the the Dubai Fintech Summit on May 8.

Furthermore, Garlinghouse claimed that the United States remains stagnant, in comparison to the United Arab Emirates’ (UAE) regulatory advancement. The Markets in Crypto-Assets (MiCA) of the European Union and the Virtual Asset Regulatory Authority (VARA) of the United Arab Emirates are well ahead of the U.S., he said.

Ripple CEO addresses SEC Chair

The Ripple CEO also had a message for the SEC Chair, Gary Gensler. Garlinghouse said that it is a problem living in a nation where politics has taken precedence over policy. Garlinghouse counsels aspiring businesspeople, “If I were you, I would not start in the United States.” He thinks that many American businesses and publicly traded American enterprises would concur.

Additionally, Garlinghouse was questioned whether the United States needs a clear regulatory framework for cryptocurrencies. He responded that the SEC must comprehend that the great majority of those working in blockchain and cryptocurrency are good actors.

The SEC filed a lawsuit against Ripple in December 2020. The complaint alleges that Ripple had traded XRP tokens as an unregistered security without authorization. However, Ripple has long challenged the assertion, saying that it doesn’t meet the Howey test’s definition of an investment contract. The dispute has been ongoing for over two years and has affected the U.S. market negatively. Nonetheless, according to Garlinghouse, the judge may make a ruling in the next three to six months.

However, there are fresh rumor making the rounds that the verdict may be delayed until next year. According to prominent crypto influencer “Mr. Huber,” Judge Torres may release the ruling after her 2023 summer vacation. However, there is no confirmation on the matter.