The SEC action cost $200 million to fight, according to Ripple CEO Brad Garlinghouse. He bemoans the politics-first approach and crypto regulation in the US and urges businesspeople to steer clear of the country.
Discrepancy Between SEC and Ripple Cost Ripple $200 Million
On May 8, at a fireside talk at the Dubai Fintech Summit, Garlinghouse revealed the number. According to him, the United States remains stalled in terms of regulatory development compared to the United Arab Emirates virtual asset regulatory body and the current Markets in Crypto-Assets (MICA) bill in the European Union.
Moreover, he continued by saying that by the time the matter is resolved, the company would have spent $200 million defending itself against a lawsuit that, right from the start, doesn’t make much sense.
Garlinghouse’s Statements
Garlinghouse regretted that the United States had severely lagged behind as the company expanded to the United Arab Emirates in a message to SEC head Gary Gensler. The fact that the nation has prioritized politics over policy, in his opinion, makes the issue difficult.
When businesspeople ask Garlinghouse for advice on starting something, he says one of the first pieces of counsel he gives them is, “If I were you, I would not start in the United States.” Many U.S.-based businesses and publicly traded U.S. enterprises, in his opinion, would concur.
The Incidents Between the SEC and Ripple
The SEC lawsuit against Ripple in December 2020 claimed that the company had offered XRP tokens as an unregistered security without authorization. The company has long challenged the assertion, saying that it doesn’t meet the Howey test’s definition of an investment contract.
The lawsuit has been ongoing for 2.5 years. According to Garlinghouse, the judge is anticipated to make a ruling during the following three to six months.
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