<\/p>\n
Ripple CEO Brad Garlinghouse believes the United States Securities and Exchange Commission (SEC) will face a prolonged process before having the chance to appeal Judge\u2019s Torres favorable ruling in the case against Ripple.\u00a0<\/p>\n
On July 13, Judge Torres ruled partially in favor of Ripple Labs in a case brought forth by the Securities and Exchange Commission in 2020, ruling that the XRP (XRP) token is not a security regarding retail sales on digital asset exchanges. <\/p>\n
However, Torres ruled that XRP is a security when sold to institutional investors, as it met the conditions set in the Howey Test.\u00a0<\/p>\n
In an interview with Bloomberg on July 15, Garlinghouse dismissed the institutional sales decision as “the smallest piece” of the lawsuit, and believes if the SEC were to file an appeal against the retail sales ruling, it would \u201conly further\u201d solidify the decision that Judge Torres made. <\/p>\n
Garlinghouse believes that it could be a while before the SEC can file an appeal.<\/p>\n
\u201cAs a matter of law, the law of the land right now is that XRP is not a security. Until there is an opportunity for the SEC to file an appeal, which would take years, frankly we are very optimistic.\u201d<\/p><\/blockquote>\n
Garlinghouse emphasized that this is the first time the SEC has lost a “crypto case.” He called out the SEC for being “a bully\u201d and going after \u201cweak players\u201d in the crypto industry who weren\u2019t able to \u201cmount a proper defense.\u201d<\/p>\n
He also noted that when the case against Ripple was first filed, a lot of the crypto exchanges in the U.S. had the attitude of waiting to \u201csee what happens,\u201d due to uncertainty.<\/p>\n
Related: <\/em><\/strong>XRP ruling a \u2018watershed moment,\u2019 but we\u2019re not out of the woods yet \u2014 Lawyers<\/em><\/strong><\/p>\n
This is because the SEC \u201csowed confusion” in the market, according to Garlinghouse.<\/p>\n
\u201cThey knew there was confusion, and they actually did things that they knew would increase confusion\u201d he stated.<\/p>\n
\nWe said in Dec 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today\u2019s decision \u2013 one that is for all crypto innovation in the US. More to come.<\/p>\n