Brad Garlinghouse Discusses Ripple’s Regulatory Challenges at Dubai Fintech Summit, CNBC Reported on May 8.
Ripple CEO Brad Garlinghouse
Here, Garlinghouse shed light on Ripple’s ongoing legal conflict with the U.S. Securities and Exchange Commission (SEC).
“Together with the SEC … we’re going to spend $200 million defending ourselves against what everyone thought was pointless at first.”
Garlinghouse added that this is the first time he has publicly shared the cost of the lawsuit and believes the U.S. is “definitely stuck” on the regulatory front.
Does SEC Action Debunk Ripple Lawsuit Conspiracy Theory?
Elsewhere, Cardano (ADA) founder Charles Hoskinson argues that the SEC’s recent anti-cryptocurrency move debunks conspiracy theories (that have been circulating) about the regulator’s dispute with Ripple.
In a tweet on May 8, Hoskinson emphasized that the theory circulating among XRP holders that the SEC is against XRP accepting bribes from within Ethereum is just a conspiracy theory. He added that the Commission’s recent regulatory actions against the crypto industry prove that this is an accurate assessment.
“I said that the theory that the SEC was against Ripple by accepting bribes from within Ethereum was a conspiracy theory. Now that Coinbase, Kraken, Bittrex, Tron, and dozens of others have been hacked, it seems more More accurate than ever.”
I said the whole SEC united against the idea of Ethereum insiders bribing Ripple as a conspiracy.It seems more accurate than ever now that Coinbase, Kraken, Bittrex, Tron, and dozens of others have been hit
— Charles Hoskinson (@IOHK_Charles) May 8, 2023
While the SEC-Ripple lawsuit is still ongoing, SEC Chairman Gary Gensler argued that all cryptocurrencies other than Bitcoin are securities and highlighted the crypto companies’ violations.
At the same time, XRP advocates are constantly “chewing” former SEC Chairman William Hinman’s speech on Ethereum (ETH), claiming that this is evidence that ETH has the support of the Ethereum Committee. According to them, the presentation helped ETH gain widespread adoption and increase in value. However, other cryptocurrencies — including Ripple — have struggled with regulatory uncertainty.
One XRP proponent, Mr. Huber, said it was absurd for anyone to think that Hinman’s speech was purely coincidental.
Meanwhile, the SEC stated that Hinman’s speech was a personal opinion, which has been refuted by the XRP community. Hoskinson has repeatedly criticized this view, saying Ripple should have built the company on its values rather than accusing regulators of bias.
In December 2022, Cardano’s founder described the XRP community as “toxic” and petty. He also said that he had never “encountered a community willing to maliciously attack people who did not attack them”.
Will Ripple expand in Dubai?
In a recent tweet, Garlinghouse stated that Ripple will expand to Dubai in response to the U.S. regulatory environment. He said 20 percent of Ripple’s customers do business in the Middle East and North Africa region, which has a “clear regulatory regime” and is becoming a global financial hub.
Ripple’s troubles began in December 2020, when the SEC accused Ripple and its executives of violating securities regulations by selling XRP tokens. Ripple is just one company trying to fight the SEC. Cryptocurrency exchange Coinbase is also preparing to file a lawsuit with the SEC after receiving Wells’ notice from the regulator.
It is unclear whether the two lawsuits will succeed. There will be new developments in the future, let us wait and see.
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