In a recent advancement in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), Ripple CEO Brad Garlinghouse announced the company's intention to contest a substantial disgorgement claim from the SEC. During a CNBC interview Today, Garlinghouse disclosed Ripple's strategy to challenge the SEC’s demand for $770 million tied to institutional sales of XRP, following an agreed-upon briefing schedule for Section 5 remedies.
The decision to push back comes after Ripple achieved three consecutive legal victories that bolstered their position. On July 13, Judge Torres delivered a pivotal ruling stating that XRP does not qualify as a security. This significant win for Ripple led to XRP being relisted on cryptocurrency exchanges, which in turn spurred a price surge past $0.80. Compounding this momentum, Judge Torres rejected the SEC's interlocutory appeal request and dismissed charges against Ripple executives.
Garlinghouse criticized the SEC for what he perceives as repetitive and inconsistent regulatory actions, drawing parallels with Grayscale's Bitcoin ETF victory to underscore his point. He accused the SEC of deviating from its core mission of protecting investors and expressed approval of the judge’s focus on investor protection and adherence to securities laws for institutional investors.
Looking ahead, Garlinghouse outlined several factors that he believes will drive growth within the cryptocurrency industry, including regulatory clarity, utility, and scalability in addressing large-scale problems. He also suggested that macroeconomic influences would persist in shaping the industry's trajectory.
The market has responded positively to Ripple's legal milestones and broader industry trends, with XRP currently trading at $0.65. This price reflects a notable 32% increase over the past month and an impressive 85% rise over the past year, signaling investor confidence amidst ongoing regulatory challenges.
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