On November 8th and 9th, Ripple CEO Brad Garlinghouse criticized the U.S. Securities and Exchange Commission (SEC) at the Ripple Swell conference in Dubai. In the wake of Ripple’s recent victory regarding cryptocurrency XPR’s status as a security, Garlinghouse accused SEC of losing sight of its investor protection mission. The SEC had accused Ripple of a $1.3 billion securities fraud in 2020, alleging the company failed to register the ongoing sale of XRP tokens, depriving investors of essential disclosures. Despite a judge ruling in July that XRP itself is not a security, the SEC was denied an appeal, and in October, it dropped charges against Garlinghouse and another executive.
Garlinghouse sees this as a positive development for the entire industry, hoping it marks a turning point for blockchain’s potential in the U.S. He believes the SEC being “put in check” will allow the industry to thrive in the country. The next phase involves the SEC’s remedies discovery process, which has a 90-day timeline from November 9.
