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- Ripple CEO has, in several statements, reiterated his belief in a victory against the SEC.
- Garlinghouse said the chances of SEC’s appeal getting green-light are very slim.
- He said the July decision was based on core principles of the Howey test, which the SEC contradicted.
Ripple Labs CEO Brad Garlinghouse has, in several recent statements, reiterated his firm beliefin the company’s victory against the U.S. Securities and Exchange Commission (SEC) on thesecurities status of XRP.
“Everything the SEC cares about, they lost… A freight train was driven through Gensler’sarguments,” the CEO said at Messari’s Mainnet conference. The statements echo theconfidence of Ripple, which had been embroiled in a legal tussle with the regulator for close tothree years now.
While speaking on the X (formerly Twiter) forum organized by Linqto, which also had prominentXRP advocate John Deaton in attendance, Garlinghouse expressed the chances of SEC’svictory at appeal are very slim.
The regulator is seeking to overturn a July decision by Judge Analisa Torres that XRP sales toindividuals don’t qualify as a security. But Garlinghouse believes Judge Analisa will deny theinterlocutory appeal.
According to Garlinghouse, the judge applied principles that the SEC itself had held onto for along time – the Howey test. He continued that what created the distinction between institutionaland XRP sales was whether the buyers knew they were buying from Ripple.
Furthermore, he said the court reasoned that most individual sales of XRP were done throughblind exchanges. Thus, the buyers couldn’t have acted on promises made by Ripple since theydidn’t know they were buying from the company.
However, should the decision be overruled, Garlinghouse stated the path to appeal isn’t astraight road for the regulator. He clarified that if the interlocutory appeal is allowed, then theregulator still has to convince the courts of appeal to hear its case.
Furthermore, he added that the outcome at that stage would be a return to Judge AnalisaTorres to preside over the decision again. Garlinghouse noted that a similar outcome would bereached so long as the judge is acting on the principles underpinning Howey’s investmentcontract test.
The post Ripple CEO Blows Hot, Says “Everything the SEC cares about, they lost” appeared first on Coin Edition.
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