Ripple’s Brad Garlinghouse Feels Confident In SEC Lawsuit; Larsen Says XRP Is Being Singled Out
Ripple’s Chris Larsen Sees Regulatory Disclarity As Major Issue for Crypto Companies
Co-founder and executive chairman of Ripple Labs Chris Larsen has blamed the slow traction of Ripple and its XRP token in the US on the lack of regulatory clarity.
Speaking on Bloomberg Markets, Larsen said XRP had been in existence for about 9 to 10 years and that it is perplexing to see Ripple being attacked by the U.S Securities and Exchange Commission (SEC).
XRP's Attack Is Perplexing
Larsen highlighted several countries like Japan, UAE, and Singapore that have deemed XRP as a currency in the interview. On the other hand, the US is still yet to clarify which digital assets are currencies or securities.
Ripple has remained resolute in the face of the battle. Ripple Labs CEO revealed recently that he feels positive about the progress being made so far in court.
Ripple has enjoyed some minor victories along the way, with the SEC accusing the company of possible harassment.
The US financial watchdog made this accusation in its letter to Judge Sarah Netburn.
The financial agency said Ripple's request for internal records was a strategy by the defendants to harass the agency and derail the focus of the case. The agency said Ripple and its executives were not in any way interested in seeking relevant evidence. However, Garlinghouse said this was untrue. He added,
“It's hard to imagine a small company like Ripple against the US Securities and Exchange Commission could be described as harassing. You know, Jay Clayton, under his leadership, decided to bring this lawsuit, and we're gonna defend ourselves.”
The SEC is now asking the judge to limit the discovery process to its external records or documents to prevent Ripple from getting access to its internal communications.
The regulator had sent this letter after Netburn granted the defendants; Ripple, Brad Garlinghouse, and Chris Larsen access to the SEC's records relating to XRP, Bitcoin, and Ether. BTC -0.84% Bitcoin / USD BTCUSD $ 47,684.22
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Garlinghouse continues to emphasize that XRP is an open-source technology and not a security.
In an interview with Fox News, Garlinghouse reiterated his stance on XRP's status as a currency, describing the similarities between his company's digital currency and Bitcoin.
He added that the fact that BitPay, one of the leading payments firms, supports XRP is one example of how the token is not a security.
When asked if XRP needs to be adopted by Fortune 500 companies to be considered a currency, Garlinghouse said Ripple doesn't need such deals as several companies already use the currency for payments.
Ripple Making Strides Despite Lawsuit
Despite the lawsuit, Ripple is still making strides in its blockchain accelerator program.
In a blog post on its website, the blockchain firm announced that it has partnered with three more universities in its University Blockchain Research Initiative (UBRI).
The new additions are the University of Capetown, Reykjavik University, and the New York University Abu Dhabi (NYU Abu Dhabi). The three new institutions join 35 other global partners who are actively engaged in blockchain research and building new use cases for fintech.
Ripple says that UBRI is laser-focused on moving the crypto industry forward by providing the needed tools and resources to its member institutions.