Key points to remember
- Ripple CEO Brad Garlinghouse took to Fox Business today to discuss the latest developments in the company’s lawsuit.
- Garlinghouse said the SEC had “lost its way” and was “hello for cocoa puffs.”
- XRP jumped 17% ahead of Garlinghouse’s TV appearance.
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XRP is booming after Ripple Labs CEO Brad Garlinghouse lambasted the SEC in a TV interview today. Ripple is currently embroiled in a lawsuit from the SEC, which claims to have sold $1.3 billion worth of unregistered securities. However, many argue that the SEC mishandled the case at several critical stages.
“To grossly exceed his authority”
Today Ripple CEO Brad Garlinghouse declared on Fox Business that the Securities and Exchange Commission (SEC) had “lost its way” and was “hello for cocoa puffs.”
“As the summary judgment filings became public, people realized that maybe the SEC was really going too far,” Garlinghouse said. “They really don’t follow a stalwart allegiance to the law – that’s a quote from the judge in this case.” He added: “We think [the judge] has the information necessary to make the decision and we believe it is very clear that the SEC grossly exceeds its authority.
Ripple’s token, XRP, already up 6% on the day, soared a further 18% ahead of Garlinghouse’s appearance and comments. According CoinGeckoit is currently trading at $0.48, up 61.64% from its summer lows, but still down 85% from its all-time high of $3.40, which it has achieved in January 2018.
The second deposit a lawsuit against Ripple, Garlinghouse and Ripple co-founder Christian Larsen in December 2020 for allegedly selling over $1.3 billion in unregistered securities. But Ripple has continuously maintained that XRP fails the Howey test and therefore does not meet the criteria to be considered a security.
Garlinghouse reiterated that claim on television today. “The first step in determining [whether XRP could] to be a security is that you have to have an investment contract. Our point is that Ripple has no contract. With whom is the contract? It’s not a written contract, it’s not an oral contract, it’s not an implied contract. US Magistrate Judge Sarah Netburn, who is overseeing the case, also recently slammed the SEC on his litigation tactics, calling them hypocritical. A date has not yet been set for the judgment.
Disclosure: At the time of writing this article, the author of this article owned BTC, ETH, and several other cryptocurrencies.