Garlinghouse says SEC defense costs Ripple $200M

According to CEO Brad Garlinghouse, Ripple has spent $200 million defending the case launched against it by the United States Securities and Exchange Commission (SEC).

Garlinghouse disclosed the number during a May 8 fireside conversation at the Dubai Fintech Summit.

He stated that the United States is lagging behind the virtual asset regulatory authority of the United Arab Emirates and the recent Markets in Crypto-Assets (MICA) bill in Europe.

He went on to say that by the time the case is resolved, Ripple will have spent $200 million defending itself against a lawsuit that made little sense from the start.

In a message to SEC chairman Gary Gensler, Garlinghouse expressed regret that the United States has fallen substantially behind Ripple’s expansion into the United Arab Emirates.

According to him, the most difficult aspect of the circumstances is that a nation has prioritized politics over policy.

If I were you, I wouldn’t start in the United States, according to Garlinghouse, one of the first pieces of advice he gives to entrepreneurs who seek his assistance in launching a venture.

He believes that many U.S.-based firms and public U.S. firms would concur.

When asked about the need for a clear regulatory framework for cryptocurrencies in the United States, Garlinghouse stated that the SEC must recognize that the vast majority of people working in cryptocurrencies and blockchain are decent actors who wish to follow the rules of the road but require clarification.

In December 2020, the SEC filed a lawsuit against Ripple, a cryptocurrency payment platform, alleging that Ripple unlawfully sold XRP tokens as unregistered securities.

Ripple has long contested the claim, arguing that it does not meet the Howey criteria for an investment contract.

The case has been ongoing for two and a half years and has impacted the U.S. market negatively. According to Garlinghouse, a decision is anticipated from the judge within the next three to six months.