Ripple (XRP) CEO Brad Garlinghouse estimates that the lawsuit against US regulator SEC will cost the crypto company $200 million.
Speaking at a conference at the Dubai Fintech Summit 2023 on Monday, Brad Garlinghouse revealed that the company has already spent multi-millions of dollars to defend itself against the SEC’s allegations. As a reminder, the SEC believes that Ripple’s XRP token is a security and should be registered as such.
Let’s remember the facts: the crypto company Ripple has indeed been fighting with the SEC (Security and Exchange Commission) since December 2020, it had received its subpoena just before Christmas. Ripple is notably accused of illegally collecting $1.3 billion via the sale of its XRP token, which the SEC considers to be a security, and not a simple exchange cryptocurrency like Bitcoin (BTC) can be.
The case has been closely watched by the crypto industry, as its outcome could have significant implications for how other digital assets are regulated in the United States.
Ripple has been aggressive in its defense, filing several motions to dismiss the case and accusing the SEC of overreach and bias. In March, Ripple won a small victory when a federal judge granted its request to compel the SEC to produce internal documents related to its discussions on whether cryptos like bitcoin and ethereum are securities.
A costly lawsuit for Ripple!
Garlinghouse expressed regret over the SEC’s lawsuit against Ripple, saying that rather than regulating the industry, the SEC is focused on enforcement. He said that by the time the legal battle is over, Ripple will have spent $200 million defending itself in a lawsuit that has been baseless from the start.
With substantial financial resources at its disposal, Ripple intends to win its case in court so that a potential victory against the SEC will serve as a precedent that could help crypto startups being sued on similar charges by the U.S. regulator.
As we discussed here, Ripple is not the only one to have a trial with the American regulator. Coinbase, also in the SEC’s crosshairs, has decided to sue the regulator in order to get clear answers as to what rules to follow in the crypto-industry.
However, despite the pending SEC lawsuit, Ripple continues its expansion overseas, as evidenced by a recent agreement signed with Montenegro to launch a pilot program for a central bank digital currency (CBDC).
In fact, Ripple’s general counsel advises crypto startups to launch their blockchain projects outside the United States.
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