Brad Garlinghouse announced that $200 million has been spent defending the SEC case.
Announcing that the SEC lawsuit cost $200 million, Ripple CEO Brad Garlinghouse lamented the US’s policy of crypto regulation and politics. Garlinghouse further recommended that investors avoid the US.
Garlinghouse: Investors Should Avoid the US
As Brad Garlinghouse explained, Ripple spent $200 million defending the lawsuit filed against it by the United States Securities Exchange Commission (SEC).
Garlinghouse revealed this figure during a speech he gave at the Dubai Fintech Summit on 8 May. Compared to the regulatory progress of the United Arab Emirates virtual asset regulatory authority and the recent Crypto Asset Markets (MiCA) bill in the European Union, the US has lagged behind, the CEO said.
In a message to SEC chairman Gary Gensler, Garlinghouse expressed regret that the United States has fallen significantly behind as Ripple expands to the United Arab Emirates.
The hardest thing about this situation, according to Garlinghouse, is having a country that puts politics before its principles. Telling investors to avoid the US, the CEO believes that many US-based companies and US public institutions agree.
Ripple was sued by the SEC in December 2020 and it was alleged that Ripple was selling XRP illegally. The SEC has recognized XRP as an unregistered security. Ripple has been objecting to this claim for some time, arguing that it does not constitute an investment contract under the Howey test.
Two and a half years of litigation has created difficulties in the US market. According to Garlinghouse, the judge is expected to make a decision in the next three to six months.
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