Ripple’s Brad Garlinghouse Says No Credible Path for SEC to Challenge Core Ruling

Brad Garlinghouse SEC XRP

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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September 2, 2024

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Brad Garlinghouse, CEO of Ripple, addressed the company’s legal victory against the United States Securities and Exchange Commission (SEC), stating there is no credible path for the regulator to challenge the core ruling.

Speaking at a press conference in Seoul, South Korea during KBW2024, Garlinghouse addressed the prolonged lawsuit. The SEC and Ripple have been embroiled in a lawsuit for nearly four years.

“We don’t know whether or not the SEC will file an appeal,” Garlinghouse said, acknowledging the ongoing uncertainty.

The SEC has a 60-day window from the judge’s August 7 decision to file an appeal. However, Garlinghouse expressed confidence in the strength of the ruling, asserting, “Regardless of whether they choose to appeal, we do not see any credible path for the SEC to challenge the core ruling, which is that XRP is not, in and of itself, a security.”

Garlinghouse hopes that this judgment will signal the end of the SEC’s aggressive approach toward cryptocurrencies in the U.S. With the possibility of a change in SEC leadership following the upcoming elections, he anticipates more constructive engagement between the regulatory body and the crypto community.

“I think that what’s happened around the rest of the world really is indicative of the opportunity outside and for crypto more broadly,” Garlinghouse remarked, highlighting how the U.S. is currently lagging in the global crypto race.

He expressed optimism that this legal victory will eventually be seen as a “speed bump” in the continued growth and adoption of crypto and blockchain technologies.

Many traders may also be fearful that XRP could take a big hit in the not-too-distant future, with speculation that the SEC will appeal Judge Torres’ decision to impose a $125 million penalty on Ripple.

Global Opportunities and Focus on South Korea

Garlinghouse also shed light on Ripple’s strategic expansion plans, particularly in South Korea, where he sees huge market opportunities.

He pointed to the large and active retail crypto community in South Korea, as well as the increasing regulatory engagement, as key factors driving Ripple’s focus in the region.

Garlinghouse said a notable example of this engagement is the National Pension Service(NPS) South Korea’s largest pension fund, which invested over $2 billion—approximately 2% of its assets—into crypto companies.

Retail interest in crypto within the region is also significant, with a large portion of global XRP holdings being concentrated in Korea and Japan.

Ripple is capitalizing on this momentum by doubling down on its presence in South Korea and the broader Asia-Pacific region. The company is pursuing business deals, expanding the XRPL Japan and Korea fund, and forging academic partnerships to increase its influence and operations in these markets.

Looking Ahead

As Ripple moves forward, Garlinghouse expressed cautious optimism. While the SEC’s next steps remain uncertain, the recent legal victory gives the firm a strong foundation to expand globally.

Garlinghouse also made a light-hearted remark regarding the future of SEC Chair Gary Gensler’s term, should Kamala Harris win the presidency.

“I’ll make a gentleman’s bet with you that won’t happen,” he quipped, indicating his belief in potential changes within the SEC’s leadership.

KBW2024 Kicks off in Seoul This Week

Korea Blockchain Week (KBW2024) is taking place in Seoul, South Korea this week, 1-7 September, bringing together a global audience of blockchain enthusiasts, developers, investors, and industry leaders. The country is making its mark and leading on the Web3 and blockchain front.

Speakers include Vitalik Buterin, Arthur Hayes, Brad Garlinghouse, Richard Teng, and more.