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- In an interview with CNBC, Brad Garlinghouse stated that the ongoing case is a question of law, and he thinks the law is cristal clear at this point.
- He also disclosed that the company will hire more than 300 workers this year, but will do more outside as growth is more than 95 percent from customers outside the United States.
Ripple CEO Brad Garlinghouse has confirmed in a recent interview with CNBC that the case with the US Securities and Exchange Commission is clear, and their victory is imminent. The SEC dragged the executives of Ripple Labs to court in 2020 for issuing unregistered securities. However, Ripple has made multiple claims that their company is distant from the operation of XRP, henceforth, the asset is not securities. During the interview, Garlinghouse stated that the ongoing case is a question of law, and they think the law is clear.
The law requires that there is an investment contract, that is step one before we get to the Howie test which often talks about contracts between two parties.
Recently, both Ripple and SEC requested a summary judgment on the basis that there is enough evidence for the court to make a ruling. According to the Ripple boss, summary judgment is the fastest path to resolution. Speaking on it, he explained that they think the law is clear, and the industry needs clarity.
Ripple boss reinstated that there is no investment contract
SEC recently clarified that there could be an investment contract without a contract. In his comment, Garlinghouse explained that to have a contract, two parties must agree on something. In this case, a contract can be in any form without necessarily being a written one. In their case, there are no two parties. He clarified that Ripple does not know the people who bought XRP. Similarly, those who bought XRP do not necessarily know Ripple. Also, 99.9 percent of XRP trading has nothing to do with the Ripple company.
So when you say XRP is securities, I ask, securities of what company? It is clear that there is no investment contract.
According to Garlinghouse, the company thinks that the judge will realize that the law is very clear and so is the fact.
It is a cross overreach the SEC is trying to rest control of the uncertainties that are existing.
On the other hand, the SEC and the US government have made no steps to provide regulatory clarity that the countries around the world have, according to the Ripple CEO.
He disclosed that the company will hire more than 300 workers this year, but will do more outside as growth is more than 95 percent from customers outside the United States. He believes that this is partly because the rules and regulations are very clear in those countries. In his statement, it is a high level of inefficiency for the SEC to rely on law enforcement rather than focusing on clarity.
