In December 2020, the SEC filed a lawsuit alleging that Ripple Labs, Brad Garlinghouse and Chris Larsen illegally used XRP unregistered security for $1.3 billion. The case is still being delayed. Ripple’s CEO has threatened to leave the country if the court grants the SEC a favorable ruling.
In an interview with Axios media, Garlinghouse stated that during the Collision conference held in Toronto. He stated that they would not consider leaving the U.S. if they lose the lawsuit but that they will. However, he added that it would not affect anything in the wider crypto industry.
“If you look at the current state of the world, it seems as though the case is lost with a few exceptions […]. Does this mean that the world will change if Ripple loses?
Ripple vs. The SEC
Mid-April saw Ripple appear to have won a major victory against the SEC. Judge Sarah Netburn denied the SEC’s request for reconsideration to protect certain documents that evidencing the speech of its former Director William Hinman, which stated that Ether and Bitcoin are not securities.
The case is still being discussed. However, Ripple’s possible victory has been turned around by the SEC, who claimed that Hinman shouldn’t have given this speech due to specific conflicts of interests with these cryptocurrencies.
Garlinghouse has repeatedly referred to this point, stating that XRP can be considered a currency, and not a security. He compared its nature with that of Ethereum (ETH) or bitcoin (BTC).
Ethics officials are currently investigating whether Hinman was aware of conflicts of interest during his speech. Ripple’s legal strategy and the results of this investigation could benefit from these findings.
IPO (Initial Public Offering) is still possible
Garlinghouse recently praised the SEC’s handling of the case and said that he hopes it will be resolved by the end of the year. The company is likely to launch an IPO if that happens.
Ripple also announced plans to open a Toronto office, Canada, just a few days ago. This will create approximately 50 jobs. Ripple also has 300 employees in the U.S. and 300 abroad. So, moving its headquarters shouldn’t be a major concern for the company.
Ripple’s CEO may be shuffle his cards while he plans for the future. Those who are still enlisted in XRP Army may argue that Ripple will only expand its reach, regardless of whether it is based in the USA.
Marla Brooks – Financial Analysis
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