According to CEO Brad Garlinghouse, Ripple has spent $200 million defending the case brought against it by the United States Securities Exchange Commission (SEC). He also complains about U.S. crypto regulation and a politics-first policy, advising entrepreneurs to avoid the United States.
Garlinghouse dropped the figure during a fireside talk at the Dubai Fintech Culmination on May 8. He expressed that the U.S. is stuck contrasted and the administrative advancement of the Unified Bedouin Emirates virtual resource administrative power and the new Business sectors in Crypto-Resources (MICA) bill in the European Association. He went on to say that Ripple will have spent $200 million defending itself against a lawsuit that doesn’t make much sense from the start by the time the case is decided.
Garlinghouse expressed regret in a message to SEC chair Gary Gensler that the United States is significantly behind Ripple’s expansion into the United Arab Emirates. He says that the difficulty of the situation is that the nation has prioritized politics over policy. According to Garlinghouse, “If I were you, I would not start in the United States” is one of the first pieces of advice he gives to entrepreneurs when they inquire about starting a business. He believes that many publicly traded and U.S.-based businesses would concur.
When asked if the United States needed a clear crypto regulatory framework, Garlinghouse said that the SEC needed to understand that the vast majority of people working in crypto and blockchain are good actors who want to follow the rules but need them defined. In December 2020, the SEC sued Ripple, a payment platform for cryptocurrencies, claiming that Ripple had illegally sold XRP tokens as unregistered securities. Ripple has long disputed the claim, claiming that it does not meet the Howey test for an investment contract.
The case has impacted the U.S. market negatively over the past two and a half years. A choice is normal from the appointed authority at some point in the following three to a half year, as per Garlinghouse.