Ripple Will Leave the US if SEC Wins, Says CEO Garlinghouse
In a recent interview, Ripple CEO Brad Garlinghouse stated if the US Securities and Exchange Commission wins the lawsuit, Ripple will bid adieu to the country.
The long-delayed SEC v Ripple lawsuit continues to make headlines as the conflict intensifies. At the Collision conference in Toronto, Ripple’s CEO Garlinghouse gave a short interview to Axios media.
Garlinghouse was asked if he would move Ripple to some other country, should they lose the case. The CEO replied, “It’s not that we could, we will.”
Further commenting on the lawsuit, he said, “If you think about how the world is operating right now, it’s as if the case has been lost other than a few other exceptions […] So if we lose, if Ripple loses the case, does anything change?”
The CEO made it clear that the company will wrap up its business in the US. Further, he also shed light on the fact that losing the case will not affect anything in the larger crypto industry.
Ripple vs the US SEC: The whole case in brief
In December 2020, the SEC filed a lawsuit against Ripple Labs Inc, alleging that CEO Brad Gaelinghouse and Chris Larsen had raised $1.3 billion by using XRP as an unregistered security.
In April, things were looking up for Ripple as Judge Sarah Netburn denied SEC’s appeal to protect documents containing a speech given by William Hinman, SEC’s former director. The speech in question had Hinman stating that Bitcoin and Ether are not securities.
Garlinghouse has repeatedly emphasized that XRP is not a security, it is a currency, just like Bitcoin and Ether.
SEC, in turn, claimed that William Hinman had conflicts of interest with the cryptocurrencies and should have refrained from making that speech. This turned the tides around and wiped out Ripple’s chances of victory.
The ethics officials have launched an investigation into Hinman's speech. The probe will make it clear whether Hinman had any conflicts of interest at the time of the speech. The results of this investigation are crucial and might determine the course of the case.
Meanwhile, Garlinghouse recently announced that Ripple has plans to open an office in Toronto, Canada, which would create over 50 new jobs. Currently, Ripple is based in California and has over 300 remote employees.
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