Ripple CEO Brad Carlinghouse believes the United States’ Securities and Exchange Commission (SEC) faces a lengthy process before he has the chance to appeal its ruling in its case against Ripple Labs.
On July 13, US District Court Judge Analisa Torres ruled partially in favor of Ripple in a case brought by the SEC in 2020.
However, Torres ruled that XRP is a security when sold to institutional investors because it meets the criteria set out in the Howie test.
A Interview With Bloomberg on July 15, Carlinghouse dismissed the corporate sale decision as a “very small piece” of the case. If the SEC appeals the retail ruling, he hopes it will further vindicate Torres’ decision.
Although Carlinghouse believes it will be some time before the SEC appeals:
“By law, the law of the land right now is that XRP is not a security. Until the SEC has a chance to file an appeal, it will be years, frankly, and we’re very optimistic.”
Carlinghouse asserted that this is the first time the SEC has lost a “crypto case.” He called the SEC “a bully” and for going after players in the crypto industry who can’t “mount proper security.”
He also noted that when the lawsuit against Ripple was first filed, many crypto exchanges in the US had a wait-and-see approach due to uncertainty. As a result, several exchanges such as Coinbase and Kraken listed XRP wholesale.
Related: XRP reigns a ‘watershed moment’, but we’re not out of the woods yet – advocates
According to Carlinghouse, the SEC “sowed confusion” in the market.
“They knew there was chaos, and they actually did things they knew would add to the chaos,” he said.
Carlinghouse explained that this confusion has actually “become too powerful” for the SEC, thereby stifling innovation within the United States.
“The SEC is really trying to put the power and the politics behind providing the right policy and clear rules of the road,” he said.
He pointed out that this has made it difficult for entrepreneurs and investors to participate in the US crypto market and blockchain industry.
Magazine: XRP is not a security, Celsius CEO arrested on criminal charges, and more: Hodler’s Digest, July 9-15