Ripple CEO Brad Garlinghouse does not see Judge Torres’ ruling as a split victory, as he believes the SEC lost on the essential aspects of the lawsuit.
The crypto community has been analyzing Judge Analisa Torres’ final SEC v. Ripple case verdict.
Judge Torres’ Decision
Recall that the judge issued her decision earlier this week. While ruling that XRP is not a security, Judge Torres also ordered that XRP sales by Ripple execs and other XRP distribution to developers, employees, and charities are not securities.
However, the judge ruled that Ripple’s direct past sales to institutional investors constitute securities—these transactions amount to $728.9 million, lower than the SEC requested in its original complaint.
Fox Business Journalist Asks How Ripple Will Pay Fine
Following the ruling, many crypto enthusiasts have suggested that Ripple will be required to pay a fine of $728.9 million to the Securities and Exchange Commission.
Interestingly, prominent Fox Business journalist Charles Gasparino also weighed in on the penalty aspect of the lawsuit. In a tweet yesterday, Gasparino questioned how Ripple intends to pay the fine to the SEC.
He asked whether Ripple CEO Brad Garlinghouse would be the one to pay the SEC directly from his pocket. Furthermore, Gasparino also questioned whether Ripple has the financial capability to pay the $728.9 million to the regulatory agency.
BREAKING: Will @bgarlinghouse have to reach into his own pocket to pay @SECGov ruling the initial institutional sales of #XRP a security? Does @Ripple have enough money on its balance sheet to settle a possible @SECGov fine? We are waiting for answers from @Ripple stay tuned
— Charles Gasparino (@CGasparino) July 14, 2023
Ripple CEO Reacts
Gasparino’s questions prompted reactions from Garlinghouse. In response, Garlinghouse said the court would decide the issue of potential penalties, not the SEC.
Per Garlinghouse, the SEC’s attempt to paint Judge Torres’ ruling as a “split victory” is pathetic, adding that the agency lost every important aspect of the lawsuit.
Charlie, happy to come into the studio any time to discuss the facts. Any attempt by the SEC to paint this as some sort of split victory is pathetic. They lost on everything that matters (as many lawyers have noted, not just Ripple’s).
— Brad Garlinghouse (@bgarlinghouse) July 15, 2023
Furthermore, Garlinghouse pointed out that the lawsuit was never about fines but the company’s quest to establish the non-security status of XRP.
With Judge Torres ruling that XRP is a non-security, Garlinghouse asserted that Ripple won while the SEC lost the case.
“You very well know this case was never about fines or penalties; it was about establishing the non-security status of XRP. We won. They lost.”
To your question here about potential penalties – that’s up to the Court to decide, not the SEC. You very well know this case was never about fines or penalties, it was about establishing the non-security status of XRP. We won. They lost.
— Brad Garlinghouse (@bgarlinghouse) July 15, 2023
Notably, Garlinghouse said he is open to discussing the facts of the ruling with Gasparino.
SEC Is Pleased With Court’s Ruling
It can be recalled that the SEC also claimed to be the biggest winner of the lawsuit. In a statement sent to Fox Business, the SEC said it is pleased the court ruled that Ripple violated federal securities law in certain circumstances via its XRP offering.
The SEC’s “pathetic” statement, as described by Ripple’s CLO Stuart Alderoty, has made many believe Judge Torres’ ruling is a split victory.
