Brad Garlinghouse, the CEO of Ripple, has responded to the latest United States Securities and Exchange Commission (SEC) regulatory complaint against XRP by assuring shareholders that the company will prove their case in court.
It has been reported that Garlinghouse argued that the legal action against the XRP, which is an “assault on crypto at large.”
However, he is confident that the regulatory action will have a “snowball effect” on the industry as a whole, potentially affecting major players like Coinbase and all other cryptocurrencies, not just Bitcoin (BTC) and Ether (ETH).
“Ripple, Chris and I may be the ones named in the filing, but this is an assault on crypto at large. In this case, XRP is a proxy for every other ‘alt-coin’ in the space. From there, you have a snowball effect; this isn’t good news for any market maker, exchanges like Coinbase, etc. This sets a terrible industry-wide precedent for any company working with a digital asset.”
Likewise, Garlinghouse said that the SEC is “engaged in an all-out attack on the crypto industry,” despite the regulator claiming that it is committed to fostering innovation in the digital asset space.
He assured that Ripple will prove their case in the court. He also said that XRP is not an “investment contract” as holders have no connection or relationship with Ripple. He stressed that the market value of XRP is not correlated with Ripple’s activities, unlike securities.
Garlinghouse further stated:
“We are not only on the right side of the law, but we will be on the right side of history.”
Thus, the CEO also noted that the SEC’s action further pushes Ripple to move their headquarters outside the United States. The company said that it still looks forward to working with the new government in order to find a solution.