Brad Garlinghouse hopes the XRP court decision wakes the US Congress for clear crypto regulations, with XRP setting a positive precedent for digital assets.
Ripple CEO Brad Garlinghouse has expressed his hopes that the recent court decision regarding XRP serves as a wake-up call for Congress, underlining the need for clear regulations in the crypto industry.
According to the CEO, the ruling undermines the US regulator’s assertion that most tokens are inherently securities and is expected to set a positive precedent for other digital assets in the United States.
Ripple Labs CEO Brad Garlinghouse hails the federal court ruling, stating, “This is a win for Ripple and the entire crypto industry,” as XRP is officially recognized as a non-security token.
Hoping yesterday’s decision is the wake-up call that Congress needs. This ruling directly undercuts the SEC’s claims that nearly all tokens are inherently securities – likely to set a positive precedent for other digital tokens in the US. https://t.co/ZlSXbTigxK
— Brad Garlinghouse (@bgarlinghouse) July 15, 2023
The Last Security Issue with XRP
Notably, Garlinghouse expressed this view after an interview with Bloomberg. In the interview, he addressed the judge’s interpretation of XRP sales to institutions with accompanying paperwork. Garlinghouse stated that while it could be seen as a security, the ruling focused on a narrow definition of institutional sales as potential securities.
Regarding the implications for Ripple and the broader industry, Garlinghouse highlighted the SEC’s loss as a matter of law, emphasizing that XRP is not considered a security in various use cases, such as sales through exchanges or its usage for compensation and incentives within the XRP ecosystem.
He expressed concern that the SEC’s actions prioritize power and politics over sound policy and establish clear rules to foster innovation and investment in crypto and blockchain.
Further, as reported by The Crypto Basic Ripple CEO said that “This case was never about fines or penalties, but about establishing XRP’s non-security status. We emerged victorious while SEC suffered defeat.”
XRP Back in the United States
Discussing the delisting of XRP on platforms in the US, Garlinghouse acknowledged that exchanges initially adopted a cautious stance due to the SEC’s actions, leading to market confusion.
He noted that in the past 24 hours, major US exchanges such as Bitstamp, Gemini, Kraken, and Coinbase have either relisted XRP or publicly announced their intent to do so, following the court’s clarification that XRP is not a security.
While the legal process is still ongoing, Garlinghouse highlighted that the law of the land affirms XRP’s non-security status. He expressed optimism that any potential SEC appeal would further strengthen the judge’s decision.
Interestingly, Garlinghouse expressed that he is no longer worried about describing the various use cases of XRP, given the clarity from the court. The use cases include cross-border payments to enhance speed and reduce costs.
