Brad Garlinghouse, CEO of Ripple, remains undaunted in the face of the SEC. He and his legal team are prepared to escalate the case to the Supreme Court, the highest judicial authority in the U.S.
“I think that definitely could happen. I mean, certainly. And we’ve said this publicly —we are in it till the end.”
Those were Garlinghouse’s words in an interview at D.C. Fintech Week 2023. At the conference, Brad Garlinghouse expressed his unwavering stance. He emphasised the importance of an open dialogue between the industry and the SEC, framing it as a positive step forward. This comes in the context of the SEC hinting at a possible appeal, escalating the case to the Supreme Court.
Is Ripple in a Winning Position?
In a recent revelation, Garlinghouse shared that Ripple declined an out-of-court settlement offer. This decision could be interpreted as a clear indication of Ripple’s favourable position in the case.
“That feels really good,” Garlinghouse said. “It feels like… There’s no chance they were going to win that. Pushing that the way they did, it just feels like the SEC should be part of the solution.”
In mid-October, the SEC dismissed all charges against Garlinghouse and Executive Chairman Chris Larsen, a pivotal triumph for Ripple. Garlinghouse expressed relief after three years of legal battles, which incurred over $200 million in attorney fees.
Speculatively, the regulatory agency may be under pressure following Ripple’s three consecutive victories this year. These wins include the ruling that secondary sales of XRP don’t qualify as investment contracts, the clearing of executives from baseless charges, and the dismissal of the SEC’s request for an interlocutory appeal against the court’s decision.
Beyond SEC Victory: A Call for Improved Regulation
Garlinghouse believes there needs to be more than overcoming the SEC to attract banks and financial institutions to crypto. He emphasises the need for a regulatory landscape shift, noting that the U.S. currently poses a challenging and unfriendly environment for builders and crypto companies.
In comparison, he highlights that other countries have made significant strides with more advanced regulatory frameworks for the crypto industry.
“Japan, Australia, Switzerland, Singapore —these are countries that are leading… And you see entrepreneurs set up shop in those countries because the rules are clear.” He stated.
The above reason is why Ripple focuses on international expansion rather than local growth. Moreover, 80% of Ripple’s hiring this year occurred and will persist outside the U.S.
“Why would I want to hire more and more people in the United States when the U.S. is making it hostile for me to operate here?” Garlinghouse added.
Interestingly, the company has successfully expanded to Australia, the UK, Africa, and the Gulf States.