Cryptocurrency News

Ripple CEO Brad Garlinghouse Comments on Recent SEC Lawsuit

By January 13, 2021 No Comments

Key highlights:

  • The SEC announced a lawsuit against Ripple in December last year, accusing the company of selling unregistered securities
  • The value of the XRP cryptocurrency plummeted in response to the news
  • Ripple CEO Brad Garlinghouse recently responded to the most common questions surrounding the lawsuit

Ripple CEO comments on the SEC’s lawsuit

Ripple CEO Brad Garlinghouse recently discussed the SEC’s lawsuit against Ripple and also talked about the possibility of the company settling with the SEC. Ripple’s general counsel Stuart Alderoty also commented on the issue, and the two pointed to some critical problems regarding the SEC’s allegations that Ripple’s sales of XRP are an unregistered securities offering. 

Garlinghouse and Alderoty say that Ripple is actively working to defend itself against the allegations put forth in the lawsuit, and plans to provide a detailed response in the coming weeks.  Ripple is planning to break the silence and clarify the allegations around the company. 

Garlinghouse touched on five critical questions on his Twitter, including the potential for a settlement and the allegations that Ripple paid businesses entities to utilize XRP. According to Garlinghouse, it’s normal for a payments network like Ripple to pay incentives to its customers, citing Mastercard and Visa as examples. 

The Ripple CEO didn’t say anything about Ripple’s attempts in persuading platforms to list XRP, but he said that XRP is decentralized, and they have no control over which venues list or delist the asset. He also explained the recent issue involving investment company Tetragon. Tetragon invested in Ripple’s 2019 Series C and now wants Ripple to redeem its shares following the SEC lawsuit. Garlinghouse says that Tetragon only owns around 1.5% of Ripple, and that he is disappointed Tetragon is trying to take advantage of the SEC’s lawsuit against the company. 

Before we can learn more about the case between Ripple and the SEC, we should wait until February. The two parties will discuss the case in a pre-trial conference on February 22. Ripple and the SEC may be able to find a solution regarding the issue that appeases both parties. Meanwhile, holders of the XRP cryptocurrency saw the value of their holdings plummet after the SEC announced legal action against Ripple.