Brad Garlinghouse, the CEO of Ripple Labs, and Chris Larsen, the executive chairman, claim in a court document that the recent Bittner v. United States ruling by the Supreme Court supports their fair notice case against the Securities and Exchange Commission (SEC).
In the filing, Ripple Labs argued that the Bittner verdict supports their claim that the SEC failed to provide clear guidance on how to comply with securities laws concerning digital assets. The Bittner verdict overturned a Fifth Circuit ruling and highlighted the Due Process Clause’s requirement for fair notice.
The lawsuit filed by the US Securities and Exchange Commission against cryptocurrency payments startup, Ripple Labs Inc., is “going to be significant for the entire sector,” according to Ripple CEO, Brad Garlinghouse, who anticipates a resolution this year.
According to him, the SEC’s recent rise in crypto enforcement proceedings has kept the US behind other nations in terms of putting in place effective crypto regulation.
In an interview with Bloomberg Television on Thursday, Garlinghouse declared, “This is not a healthy approach to regulate an industry.
In 2020, Ripple was sued by the SEC. The regulator said that due to Ripple’s failure to register the digital asset as a security and inadequate disclosure, the company’s top executives misled XRP investors.
Ripple submitted a motion in September asking for the lawsuit to be dismissed on the grounds that its XRP coin is not a security covered by the SEC’s jurisdiction. The SEC has also requested an uncontested decision in its favor. Garlinghouse asserted that XRP is not a security and that Ripple utilizes it to address issues related to cross-border payments.
When questioned about why Ripple didn’t register XRP with the SEC, he responded that there wasn’t a way to do so, stating that there needed to be clearer regulations for cryptocurrencies in the US. “It’s somewhat comparable to placing the horse before the cart,” he said.
According to data from CoinMarketCap.com, XRP is the sixth-largest cryptocurrency with a market cap of roughly $19 billion. The token has decreased less than 1.09% in the last 24 hours to $0.374 at press time.
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