In a recent interview with Bloomberg Television, Ripple CEO Brad Garlinghouse reiterated the company’s willingness to take its legal battle with the U.S. Securities and Exchange Commission (SEC) all the way to the Supreme Court.
The SEC filed a lawsuit against Ripple in 2020, alleging that the company’s sale of XRP tokens constituted an unregistered securities offering. Ripple has denied these allegations, arguing that XRP is a utility token that is not subject to securities laws.
The case has been closely watched by the cryptocurrency community, as it could have significant implications for the SEC’s regulatory authority over digital assets. In July 2023, a federal judge ruled that XRP sales to retail investors on exchanges did not constitute investment contracts. This was seen as a victory for Ripple and a setback for the SEC.
However, the SEC has appealed the ruling, and the case is now before the Second Circuit Court of Appeals. If the SEC wins on appeal, Ripple could be forced to register XRP as a security and refund billions of dollars to investors.
Garlinghouse told Bloomberg that Ripple is prepared to take the case to the Supreme Court if necessary. He said that the company is confident in its legal position and that it believes that XRP is a utility token, not a security.
“We are in it till the end,” Garlinghouse said. “We are prepared to take this to the Supreme Court if necessary.”
Bloomberg notes that Ripple has incurred over $150 million in legal expenses since the SEC filed its lawsuit. However, Garlinghouse said that the company is committed to fighting the case because it believes that it is important for the entire cryptocurrency industry.
“This is a case that is bigger than Ripple,” Garlinghouse said. “It is about the future of cryptocurrency.”
The outcome of the Ripple case could have a major impact on the cryptocurrency industry. If the SEC wins, it could make it more difficult for companies to raise funds through token sales. It could also give the SEC more authority to regulate digital assets.
Also read: Beyond the Hype: Ripple Deploys Methodical Blockchain Payments Expansion to Capture Business Buy-In
If Ripple wins, it would be a major victory for the cryptocurrency industry and could pave the way for more widespread adoption of digital assets.
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