The battle between Ripple, the blockchain company behind XRP, and the U.S. Securities and Exchange Commission (SEC) has been making headlines for years. Ripple’s CEO and co-founder, Brad Garlinghouse, has made it clear that they are ready to fight this legal battle all the way to the Supreme Court. The recent developments in this lawsuit have raised questions about whether it will indeed reach the highest judicial authority in the United States.
Ripple’s Determination
Garlinghouse’s unwavering determination was evident when he stated, “I think that definitely could happen. I mean, certainly. And we’ve said this publicly — we are in it till the end.” This commitment was voiced during an interview at the D.C. Fintech Week 2023, where he emphasized the importance of an open dialogue between the crypto industry and the SEC.
One of the key indicators of Ripple’s confidence is its rejection of an out-of-court settlement offer from the SEC. Garlinghouse interpreted this offer as being met “with prejudice,” suggesting that Ripple believes it has the upper hand in this legal battle. This bold move sent a clear message that Ripple is not willing to compromise on what they perceives as a strong legal position.
Recent Legal Wins
Ripple has experienced a series of legal victories recently. In mid-October, the SEC dropped all charges against Garlinghouse and Executive Chairman Chris Larsen, marking a significant turning point in the lawsuit. Ripple successfully argued that secondary sales of XRP should not be considered investment contracts, and the SEC’s request for an interlocutory appeal was also dismissed by the court. These consecutive wins have pressured the SEC and bolstered Ripple’s position.
Despite their legal successes, Ripple’s CEO is calling for more than just a victory against the SEC. Garlinghouse believes that the U.S. needs clearer crypto regulations to create a more favorable environment for blockchain companies and financial institutions. He pointed to countries like Japan, Australia, Switzerland, and Singapore as places with leading regulatory frameworks and clearer crypto guidelines.
Expanding Beyond U.S. Borders
Ripple’s strategic response to the regulatory landscape in the U.S. is to focus on international expansion. In 2023, 80% of Ripple’s hiring was slated to be outside the United States. Garlinghouse’s rationale is clear: “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?” Ripple has successfully expanded to countries like Australia, the UK, Africa, and the Gulf States, where regulatory conditions are more favorable.
As the legal battle between Ripple and the SEC unfolds, the industry and enthusiasts alike will closely watch for the next developments. With Ripple’s determination, strong legal position, and a series of legal wins, the possibility of the case going to the Supreme Court remains a distinct possibility. However, regardless of the outcome, Ripple’s CEO emphasizes the need for clearer crypto regulations in the United States to foster a more inviting environment for innovation and investment in the blockchain space.