Ripple CEO Brad Garlinghouse says the cost of his company’s lawsuit with the U.S. Securities and Exchange Commission (SEC) will be well above nine figures.
In an interview with Ryan Selkis, CEO of crypto analytics firm Messari, Garlinghouse says Ripple Labs is in a sense representing the entire industry by taking on the SEC.
In late 2020, the SEC sued Ripple Labs for allegedly issuing XRP as an unregistered security, a case that has affected the rest of the digital asset space.
“Now I think the SEC has been a bit of a bully across the industry. We’re going to – and I’ve already shared this publicly – spend well into over $100 million defending ourselves against the SEC. And there are not many projects that can really afford it I mean the companies that can afford to do that it’s not a long list and so I think it’s not just important for Ripple, it’s important for the industry that someone can handle this.”
Garlinghouse says it’s unreasonable to set a precedent in which SEC chairman Gary Gensler can arbitrarily declare any digital asset as an unregistered security.Read:2-year Treasury yield reaches fresh 15-year high
“This is a federal government agency that works for us. It’s part of the government, we should be outraged, like the idea that now everything under Gary Gensler’s view is security is crazy talk.”
The crypto billionaire says a silver lining to Ripple’s lawsuit is that it forces the crypto space to seriously consider the scope of the SEC’s authority over the industry.
“I think the SEC has kind of become a ‘koo-koo for coco puffs’ and I think in a positive way it’s urging us all to write to our legislature to donate to people we want to be elected and I think maybe the pendulum could swing a little bit to a blow to the SEC. ”
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