Ripple CEO Brad Garlinghouse recently spoke at the Dubai FinTech Summit, addressing the company’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
Garlinghouse Refutes Security Claims
Venture capitalist Jason Calacanis weighed in on the situation, stating in response to Garlinghouse’s interview that XRP should be considered a security. He argued that it would have been more cost-effective for Ripple to register XRP as a security and play by the rules, like other market participants.
Garlinghouse dismissed Calacanis’s claims, questioning his knowledge of securities law. The Ripple CEO expressed frustration with the lack of a clear framework for registering digital assets in the U.S., which he considers an embarrassment.
“Remind me when you learned securities law?! This is embarrassing for you (and hilariously wrong as there is no framework to register digital assets in the US), but we’re all used to you making controversial statements and trolling about things you know nothing about.”
Ripple’s Costly Legal Battle
At the Dubai FinTech Summit, Garlinghouse provided more details about Ripple’s expenses in defending itself against the SEC lawsuit. He told CNBC that the company would spend around $200 million by the time the case concludes. This marks the first time he has publicly shared this figure.
Read More: Ripple CEO Reveals $200M Lawsuit Expense, Slams US Crypto Policies – Coinpedia Fintech News
The SEC alleges that Ripple, along with Garlinghouse and founding partner Chris Larsen, violated U.S. securities laws by selling XRP without registering it with the regulator. Ripple has consistently denied these allegations, maintaining that XRP should be classified as a digital currency rather than a security.
Implications For The Crypto Market
The ongoing legal battle between Ripple and the SEC has sparked a broader debate about the classification of digital assets. As more cryptocurrencies enter the market, regulatory clarity becomes increasingly crucial for both investors and innovators seeing as the United States is the largest crypto market in the world.