Connect with us

News

Why Does Ripple CEO Brad Garlinghouse Claim SEC as ‘Massively Overstepped’

mm

Published

on

VOC, Voice of Crypto, XRP, Ripple

In an interview with Axios at the Collision 2022 event, Brad Garlinghouse (CEO of Ripple) discussed his thoughts on the recent SEC complaint against Ripple. 

Galringhouse believes that “the facts are on their side.” He also says Ripple has a good chance in court because ‘the SEC has massively overstepped.’

“I’m betting that because I think the facts are on our side. I’m betting that because the law is on our side. I think the SEC has massively overstepped and is trying to take kind of jurisdictional ownership over something that is … I think they saw this gray area they’re like ‘hey we are going to go in,’ the Ripple executive elaborated.” Brad Garlinghouse said

SEC Opposes XRP Investor Community Support

Recently, the SEC opposed the decision to recognize 1,746 XRP holders as “amici curiae” along with attorney John E. Deaton. Basically, the term “Amici Curiae” means “friend of the court,” whereby an individual or organization that is not a party to a legal case but is authorized to assist the court by providing their information, expertise, or understanding of the case. In this case, support for Ripple.

Attorney John E. Deaton has 3,252 affidavits signed by XRP investors stating that they are victims of the SEC lawsuit against Ripple due to loss of profits.

The affidavit also stated that holders are not liable for the purchase of XRP; they purchased the token for utility purposes rather than as an investment or did not purchase based on the promises made by the company or its representatives.

Advertisement

Meanwhile, Mr. Deaton responded quickly, asserting that the SEC was inconsistent with its application of the law against the company. The lawyer explained that if the SEC thought that XRP was a security, they would file an order against them, issue a cease and desist order, cancel their token sale, and enforce binding on Jed McCaleb.

Jed McCaleb co-founded Ripple in 2011 and was the first CTO of Ripple Labs. Due to internal conflicts, he left Ripple Labs in 2014 with 9.5 billion XRP in compensation and founded Stellar as a rival to XRP.

Since then, Jed McCaleb has continuously dumped XRP, and until July 18, the former Ripple CTO officially ended his “XRP dump chain” after 8 years.

Perhaps the reason the SEC does not want the XRP community and those knowledgeable in the law like Attorney John E. Deaton to get too involved in the case is understandable. A few days ago, Ripple won a legal victory that can be considered a turning point to prove that ETH is not a security.

 

 

Advertisement

Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.

Newsletter

Trending