For more than four years, Brad Garlinghouse, CEO of Ripple Labs, has not hidden his satisfaction by announcing the end of a judicial battle that caught the eye of a US regulatory hurricane.
In an interview with Bloomberg TV on March 19th this year, Gerlinghouse explained the outcome of the Bag and the Securities Commission (SEC). A milestone that brings “many certainty” Not only “Ripple”, but “the entire cryptocurrency industry.”
Disputes, that It started in December 2020 It reached a turning point after years of legal conflict when the SEC personally sued Ripple and Garlinghouse as unregistered securities for allegedly selling XRP cryptocurrency.
As Cryptootics previously reported, the SEC has decided It’s not the value when sold to the public Through exchange.
However, Torres also found that certain institutional sales from XRP violated the securities law at a value of USD 728 million, resulting in the results. USD 125 million fine It was imposed on Ripple in August 2024.
Girlinghouse revealed the ripples in an interview Invested over US$150 million In his defense of what he described as an attempt at the SEC under the guidance of Gary Gensler, “threatening the industry.”
“We’ve spent over $150 million over four years defending that case, not just for Ripple, but for the entire industry,” he said.
For executives, this effort was not in vain: waiver of appeals by the SEC Marks the end of the era of “restriction on threats” And it opens the door to a clearer and more predictable environment for US cryptocurrencies.
The Turn of the Story: Defendants to Plaintiff
According to Garlinghouse, the lawsuit took a Ripple’s unexpected turn after Torres’ 2023 ruling.
The SEC achieved a partial victory by imposing fines on institutional sales, but the fact that XRP is not classified as a value program sale It was a major blow to the regulatory position.
“We won in a key part of the incident,” Garlinghouse said.
The SEC tried to appeal the decision eight months ago, but its recent decision to give up He left a ripple in the position of force.
“We went after being requested by the plaintiffs. Now we have control over deciding how to proceed,” the CEO said. There are pending counterclaims Before Manhattan’s second appeal circuit.
This counterpart is important Ripple recovers USD 125 million Garlinghouse said it was paid as a fine but is currently in custody.
“We have to recover it. I think there are some nuances in how this develops,” he said, suggesting that the company evaluates whether to continue the process or close the chapter clearly.
“We can withdraw and everything will be resolved depending on whether we decide to continue the appeal,” he added.
Direct criticism of Gary Gensler
Gerlinghouse spared no criticism of Gary Gensler, who left SEC president after his arrival. More advantageous management for cryptocurrency In Washington this January.
“The Gensler SEC has threatened and sought to continue regulations regarding the application of the law through the presentation of requests and more requests to cryptocurrency companies,” he said.
For Ripple’s CEO, the lawsuit against your company was an example of “bureaucratic overreach” aimed at consolidating regulatory power over emerging industries, even if investors had no evidence of damage.
“If investors don’t do harm, there’s no loss of money. ‘Why are we here?’
How is Cryptootics recorded under the mission of Gensler? SEC has stepped up scrutiny on the cryptocurrency sectorlaunches legal action against giants such as Coinbase and Kraken.
But with Gary Gensler’s departure and the appointment of Paul Atkins, a lawyer recognized as more favorable to the industry by President Donald Trump, the SEC has shown signs of a turn of regulation approach.
The waiver of appeals against Ripple, along with the end of other well-known cases such as Uniswap, Coinbase, and Robinhood, suggests among others. A rather confrontational approach to cryptocurrency.
Ripples and impact on industry
The end of the lawsuit not only frees ripples from the serious legal burden, but also has deep meaning to the US cryptocurrency ecosystem.
Girlinghouse emphasized the resolution of the case. Provides clarity of regulationsan element that sector companies have been demanding for years.
“This is great for the US cryptocurrency industry and, frankly, for general cryptocurrencies,” he said.
In this sense, Ripple Labs CEO is A promising future with the arrival of new lawsas invoices on stubcoins and market structures that can establish clear standards for the SEC and the Basic Product Negotiation Committee (CFTC).
Future precedent
Ripple against the SEC remains history as a turning point in US cryptocurrency regulation. With over four years of battle with US$150 million, Ripple’s victory sends a clear message. The industry is willing to protect itself and demand clarity.
Market data shows that XRP will rise in prices by 13% after the announcement, but the Cryptoactive community will celebrate what Garlinghouse calls the “long-awaited end.”
For him, this is not just a personal or corporate victory; But a step towards a more fair and predictable regulatory environment For all actors in the sector.
(tagstotranslate) Cryptocurrency
