Brad Garlinghouse, CEO of Ripple, is increasingly optimistic that a long-term proceeding with the Securities and Exchange Commission (SEC) will have positive consequences for blockchain-based global payment companies.
On Thursday’s main stage of Paris Blockchain Week, Garlinghouse told fireside chat participants that Ripple’s defenses in an ongoing incident were much better than expected.
“The proceedings are working very well, much better than I expected when they started about 15 months ago.”
Live from # PBWS2022, @bgarlinghouse Sit down @cnbcof @ryan_browne_ He talks about cryptographic regulations, Ripple’s global traction, and the use cases he sees as growing across the industry. pic.twitter.com/ouQYhY3B5n
— Ripple (@Ripple) April 14, 2022
In 2020, the SEC filed a proceeding against Ripple and its senior management, Brad Garlinghouse and Kristian Larsen, for selling unregistered securities in the form of XRP.
The comment was announced by RippleNet community attorney that Ripple secured a “very big victory” against the SEC after Judge Sarah Netburn denied the SEC’s request to review the Shield document under privilege. Is coming after. These documents relate to a speech given by former SEC Director William Hinman, specifying that Bitcoin (BTC) and Ethereum (ETH) are not securities.
“This case is important, not just Ripple. It’s important to the entire US crypto industry,” Garlinghouse said.
He added that if Ripple loses the case, it can set a precedent for most tokens on crypto exchanges to be recognized as “securities” by the SEC.
This means that as a broker the exchange may be forced to register with the SEC and the exchange will be forced to register the identities of all token holders.
Related: SEC wins minor victory in legal dispute with Ripple Lab
“If you decide that XRP is Ripple’s security, you need to know everyone who owns it,” he said. “It’s a requirement of the SEC. You need to know all of your shareholders. It’s impossible.”
But with the compelling Ripple victory, the SEC can take a step beyond the aggressive pursuit of the crypto industry.
Stay up to date on Paris Blockchain Week with a live update from Cointelegraph. Check out the coverage on the first day here. See this second day report.
