The CEO of Ripple, Brad Garlinghouse, has expressed his frustration and disappointment at the U.S. Securities and Exchange Commission (SEC) for its refusal to postpone the discovery deadline in a lawsuit filed against the company. The SEC has accused Ripple of conducting unregistered securities transactions when it sold XRP to its investors.
Garlinghouse took to social media to voice his grievances, stating that the SEC's stance is not only unfair to Ripple but also to the millions of XRP holders. The CEO expressed his disappointment in the SEC's unwillingness to engage in a meaningful discussion regarding the regulations that govern the sale of cryptocurrencies.
The case against Ripple was initiated by the SEC in December 2020. The commission alleges that Ripple, along with its CEO and co-founder, conducted a $1.3 billion unregistered securities offering. Ripple, however, has maintained its stance that XRP is not a security but a digital currency, and thus outside the jurisdiction of the SEC.
Garlinghouse argued that the SEC's lawsuit is an attack on the entire cryptocurrency industry, not just Ripple. He stated that the SEC's actions are causing harm to the very people they are supposed to protect – the investors. The CEO also pointed out that the SEC's approach towards regulating the crypto space is inconsistent and unclear, citing the commission's previous rulings where Bitcoin and Ethereum were not classified as securities.
The ongoing lawsuit has had significant impacts on Ripple and the value of XRP. Many exchanges have delisted XRP due to the litigation, leading to a decrease in its value. Ripple has been fighting the lawsuit vigorously, with the support of a large part of the crypto community.
Garlinghouse concluded his statements by expressing hope that the new SEC leadership will act in the best interest of consumers and recognize the potential of the crypto industry. He urged the SEC to engage in a meaningful dialogue and develop clear regulatory guidelines for cryptocurrencies.