Tag: Brad Garlinghouse

Ripple CEO Brad Garlinghouse Criticizes Former SEC Chair Jay Clayton’s Regulatory Approach

by Blockchain News

The Chief Executive Officer of Ripple, Brad Garlinghouse, has voiced his disagreement with the regulatory posture taken by Jay Clayton, who formerly served as Chair of the US Securities and Exchange Commission (SEC). This criticism surfaced in response to statements made by Clayton during an interview with CNBC on June 29, 2023. Clayton was discussing the SEC’s more aggressive legal stance against corporations, especially those operating in the cryptocurrency industry.

The Securities and Exchange Commission (SEC) started taking a number of regulatory measures against cryptocurrency organizations and exchanges at the beginning of 2023 in an effort to safeguard investors. The regulatory environment has been significantly disrupted as a result of these moves, which has increased the level of legal uncertainty for a variety of crypto organizations. In an interview with CNBC, Clayton said that legal action should only be conducted against corporations that have good legal grounds, and he emphasized that regulatory agencies should provide claims and policies that are capable of withstanding the examination of a court.

In his response to Clayton’s interview, Garlinghouse pointed out the irony of the situation, particularly in light of the fact that the SEC had previously initiated a case against Ripple when Clayton was in charge of the agency. Ripple, Garlinghouse, and Christian Larsen, the co-founder of Ripple, were accused in a lawsuit that was filed in December 2020 of arranging a “unregistered, ongoing digital asset securities offering,” and it was claimed that they made more than $1.3 billion from the sale of XRP. Garlinghouse brought out the inconsistency between Clayton’s words and his actions and emphasized the flimsy legal foundation of the SEC’s case against Ripple, which intended to categorize XRP as a security. He did this by pointing out the discrepancy between Clayton’s words and his actions.

The disclosure of Clayton’s remarks from June 2023 has emerged as a topic of conversation among the parties engaged in the current court procedures, which are still ongoing. The Securities and Exchange Commission (SEC) submitted a petition in October asking the court to dismiss the allegations against Garlinghouse and Larsen without prejudice, which further stirred the current discussion about the regulatory environment for cryptocurrencies.

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Ripple Executives Cleared of SEC Charges in Landmark Decision

by Blockchain News

Ripple, a major player in the business blockchain and cryptocurrency solution markets, has made an important announcement about a successful court battle. Both of the company’s top executives, Brad Garlinghouse and Chris Larsen, were cleared of all allegations brought against them by the SEC. Following a vote, the Commission decided to reject these claims “with prejudice,” bringing to an official close a protracted legal struggle that had been going on since December 22, 2020 when it first began.

In a statement on the case, Garlinghouse said, “Rather than targeting criminals exploiting customer funds on offshore exchanges, the SEC pursued us, who are operating a regulated business within the United States.”

The Timeline of the Case

The Securities and Exchange Commission (SEC) initiated this action by filing a civil complaint against Ripple and its senior executives in the latter half of the year 2020. Although no claims of fraud were made, the primary contention was that XRP, the digital currency provided by Ripple, ought to have been registered as a security. This was the major point. An important turning point occurred in July 2023, when a court decided that XRP was not a security. This decision made it more difficult for the SEC to maintain its stance. After this, in October, a verdict was issued that denied the SEC’s request for an appeal, which further weakened their case.

Possible Consequences for the Cryptocurrency Industry

The regulatory environment for cryptocurrencies in the United States has been significantly impacted as a result of the hostile position taken by the SEC regarding Ripple. Recent sources indicate that as of the third quarter of 2023, approximately 90 percent of Ripple’s commercial operations are now carried out outside of the United States. Chris Larsen made the following observation about the situation: “We are legally vindicated, but the ordeal has raised serious industry-wide concerns.”

The Company’s Future Goals and Focus on the Global Market

Ripple has emphasised that its quest for a regulated crypto ecosystem in the United States is far from done, despite the fact that it has recently won a number of judicial triumphs. The company is continuing its proactive engagement in talks with politicians and regulators located all over the world in an effort to influence the future of digital assets in a responsible manner.

While Ripple is busy rejoicing over its most recent victory, the actions of the SEC have stoked discussions over the efficacy and clarity of regulatory oversight. The action involving Ripple might set a precedent for the SEC’s future contacts with other crypto firms, highlighting the need of a more unified approach to regulatory policy.

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Ripple Gains Major Payments Institution License from Singapore’s Monetary Authority

by Blockchain News

Ripple’s Singapore subsidiary, Ripple Markets APAC Pte Ltd, has successfully secured its MPI license for digital payment tokens (DPTs) from the MAS. The license comes on the heels of the regulatory body’s in-principle approval of Ripple’s application in June 2023. Singapore has been a pioneer in establishing a robust regulatory framework for DPTs through its Payment Services Act. This license enables Ripple to continue offering regulated digital payment token services in Singapore, a market that has been pivotal for the company’s global operations.

Ripple’s license acquisition is part of a broader trend of regulatory approvals in Singapore. GSR Markets Pte. Ltd. received In-Principle Approval for an MPI license on October 2, 2023. Coinbase Singapore, Circle, Blockchain.com, and Crypto.com have also secured full MPI licenses this year. These approvals underscore the competitive yet regulated environment in Singapore, which is rapidly becoming a global hub for blockchain and crypto enterprises. The series of approvals from MAS highlights the city-state’s commitment to fostering a vibrant but well-regulated digital asset ecosystem.

Brad Garlinghouse, CEO of Ripple, highlighted the strategic significance of Singapore for the company. “Since establishing Singapore as our Asia Pacific headquarters in 2017, the country has been pivotal to Ripple’s global business,” he stated. Ripple has doubled its headcount in Singapore over the past year and plans to continue its regional expansion. Over 90% of Ripple’s business occurs outside the United States, with the Asia Pacific being one of its fastest-growing markets. The company aims to leverage Singapore’s regulatory clarity and burgeoning crypto ecosystem for its future growth.

Ripple maintains an active dialogue with policymakers and regulators to drive responsible innovation in the digital assets industry. The company will continue its engagement with the MAS, with key executives slated to speak at the Elevandi Insights Forum and the Singapore Fintech Festival from November 14-17, 2023. These speaking engagements are part of Ripple’s broader strategy to foster relationships with regulatory bodies and contribute to shaping the future of digital assets.

Ripple is a frontrunner in enterprise blockchain and crypto solutions, focusing on transforming global financial systems. The company aims to offer faster, more transparent, and cost-effective solutions, challenging existing inefficiencies in the financial sector. Singapore ranked fourth in the 2022 IMD World Digital Competitiveness Ranking. Regulatory clarity has been pivotal in attracting businesses and financial institutions to explore crypto solutions in the city-state. The country is home to over 700 Web3 companies and has a significant percentage of its population engaged in crypto activities, making it a pivotal market for the growth of the crypto and Web3 economy.

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Ripple CEO Criticizes SEC’s Use of Quarterly XRP Report in Lawsuit

by Blockchain News

The Chief Executive Officer of Ripple, Brad Garlinghouse, expressed his hatred for the United States Securities and Exchange Commission (SEC) on August 2, 2023. This was in response to the SEC’s use of Ripple’s quarterly XRP Markets Report as evidence against the company in a court action that is still ongoing at the time of this statement.

On July 31, 2023, Ripple gave a presentation entitled Q2 2023 XRP Markets Report. The report focuses on critical highlights, such as the important summary judgment ruling given by Judge Torres, clarifications on misconceptions, and statistics on Ripple’s XRP holdings, among other things.

Ripple’s XRP holdings increased from 5,506,585,918 to 5,551,119,094, which is equivalent to a gain of almost 45 million, although the total amount of XRP held in ledger escrow decreased by more than 1 billion. It’s possible that the rising demand for XRP is responsible for this shift in the market.

In addition, the attorney representing XRP, John Deaton, voiced significant opposition to the use of these reports as evidence against the company and its management in the ongoing action brought by the SEC. He was critical of the tactics used by the SEC, which he said were not consistent with those used by other businesses.

In the case of the Securities and Exchange Commission v. Ripple Labs, which was heard on July 13, 2023, Judge Torres delivered a finding saying that XRP is not deemed to be a securities. This decision was made public on July 13, 2023.

The business did, however, clarify that sales of XRP under written contracts had the potential to be classified as investment contracts and hence fall within the security categorization. Ripple Labs was the defendant in the litigation that led to this decision by the Securities and Exchange Commission.

Ripple also addressed concerns on its partial success by underlining the fact that even if XRP is not a security in certain contexts, it may still be considered as one in particular situations, and the verdict affords protection to sophisticated institutions but not to retail clients.

This was done in an effort to clear up any confusion that may have arisen as a result of the partial success that Ripple has had. Additionally, Ripple brought attention to the fact that the judgement does not provide a protection guarantee for retail purchasers.

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Ripple’s CEO Discloses to Spend over $100m Fighting Legal Battle with SEC

by Blockchain News

Brad Garlinghouse, the CEO of Ripple, has disclosed the cost implications of its legal battle with the US Securities and Exchange Commission (SEC).

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In a recent interview, Garlinghouse disclosed that Ripple would have spent more than $100 million as payments for legal fees by the end of the case. However, the CEO said the expenses are worth it.

Garlinghouse indicated the SEC is exploiting the inability of firms to pursue a legal battle with the regulators because of the cost. He said the regulators use this to corner the firms into signing a settlement. In his words, “the SEC threatens companies into settlement because they can’t afford to fight.”

Furthermore, Brad also explained Ripple’s reasons for pursuing the legal route rather than the common practice of settlement by other firms.

He said the regulators have always benefited from the high cost associated with legal battles against the firms. And as such, this was important not only for Ripple but also for the industry. Ripple is requesting that the regulator spells out its regulations for the industry.

Implications of the prolonged SEC vs Ripple legal battle 

The SEC versus Ripple is one closely followed by many in the crypto community as it waits to see on whose side the pendulum will swing.

The verdict on the case has far-reaching consequences on the developing crypto space. And as such a win for Ripple is a win for the crypto community.

Should the verdict go in favour of Ripple, the regulators will be forced to provide clearer guidelines for the nascent ecosystem.

However, a loss for Ripple would give the SEC the backing to continue clamping down on industry players. Such firms will be pressured into reaching a settlement rather than pursue a legal battle with the regulators.

Both parties are carefully making their moves to win the case. The SEC continues gathering information and regulatory laws worldwide to build its case. On the other hand, Ripple has requested the court to bring back the SEC’s ex-chair, Bill Hinman. Hinman’s previous statements concerning Ethereum being a commodity adds value to Ripple’s case.

Earlier in June, Ripple recorded its first win. Judge Sarah Netburn rejected a request by the regulator for attorney-client privilege regarding documents containing Hinman’s statement.

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Ripple to Explore IPO after SEC Lawsuit, CEO Discloses

by Blockchain News

Blockchain payments firm Ripple Labs Inc might be battling a lawsuit with the United States Securities and Exchange Commission (SEC), but it is in no way losing focus on what the future holds.

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In an interview with CNBC, Chief Executive Officer Brad Garlinghouse has confirmed that the firm will consider moves to float its Initial Public Offering in the US when it is done with the SEC.

“I think we want to get certainty and clarity in the United States with the U.S. SEC. You know, I’m hopeful that the SEC will not slow that process down any more than they already have,” Garlinghouse told CNBC during the World Economic Forum in Davos. “But you know, we certainly are at a point in the scale, where that is a possibility. And we’ll look at that once we’re past this lawsuit with the SEC.”

Garlinghouse said he hopes the SEC will not impede its speed when it wants to push for the public listing as it has done through the legal battle that has lasted well over 12 months. The plans to go public have long been in the works for Ripple as it looks to thread similar paths as Coinbase Global Inc which made its public debut back in April 2021.

While Garlinghouse is optimistic the ongoing legal brawl will be concluded this year, and hopefully, in the firm’s favour, the entire plan of an IPO is an ambitious one amidst a largely bearish market.

While Ripple Labs operates with the aid of the XRP coin which helps in facilitating cross-border transactions, it said the bulk of its business is dominated outside of the US, and the slump of the XRP coin in recent times, fueled in part by the SEC lawsuit has not impacted its overall productivity. Garlinghouse said it increased its On-Demand Liquidity transactions which totalled $8 billion this quarter versus $1 billion in the same period last year.

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Ripple CEO Brad Garlingouse Speaks Against Bitcoin ‘Tribalism’

by Blockchain News

While many may consider the unwavering support from Bitcoin “Maximalists” like MicroStrategy’s Michael Saylor and Block Inc’s Jack Dorsey, Ripple CEO Brad Garlinghouse believes the culture of “Tribalism” in which some people support one digital asset only is dragging the growth of the cryptocurrency industry.

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“Polarization isn’t healthy in my judgement,” Garlinghouse said, speaking in an interview with CNBC at the Paris Blockchain Week Summit. “I own bitcoin. I own ether, I own some others. I am an absolute believer that this industry is going to continue to thrive.”

For an industry that began more than 13 years ago with Bitcoin, there has been a lot of evolution, with more than 18,900 diverse cryptocurrencies summing up to about $2 trillion in market capitalisation per data from CoinMarketCap. Amidst this diversity, Garlinghouse believes every digital asset has a specific solution it brings to the table, and these differences should be appreciated.

“Yahoo could be successful, and so could eBay … They’re solving different problems,” he said. “There’s different use cases and different audiences and different markets. I think a lot of those parallels exist today.”

The Ecosystem and the Ripple Backing Against SEC

While Garlinghouse’s company, Ripple, is closely associated with the XRP coin, which it uses for cross-border payments and general cash transactions, his claims that he has a divergent interest in a number of digital currencies is a position that is markedly different from a number of leaders in the ecosystem.

For Garlinghouse, the fragmentation in support is one of the reasons why the entire industry has a little representation in Washington, a reference he made to showcase how low the number of crypto-friendly lawmakers are in both the Senate and the House.

Despite the fragmentation that Garlinghouse observed, the broader crypto community has rallied in support of Ripple, which is currently in a heated legal tussle with the U.S. Securities and Exchange Commission (SEC) over the sale of XRP tokens as security. Despite Garlinghouse’s stance, changes to the maximalist mindset is a culture that will take time to change.

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Ripple announces $200M share buyback and expresses optimism for 2022

by Cointelegraph

Blockchain payments firm Ripple has announced a $200 million Series C share buyback, a decision that will take the San Francisco-based tech firm to a record-high valuation of $15 billion.

Back in December 2019, Ripple raised $200 million in a Series C funding round with Tetragon Financial Group, a United Kingdom-based investment firm, acting as the lead investor alongside other participants SBI Holdings and Route 66 Ventures.

However, in December 2020, the United States Securities and Exchange Commission (SEC) issued a $1.3 billion-dollar financial lawsuit against Ripple Labs, as well as co-founder Chris Larsen and CEO Brad Garlinghouse; accusing the parties of using the native XRP token as an unlicensed digital asset security.

Intent on disassociating themselves with Ripple amid their high-profile and openly public lawsuit, Tetragon sued Ripple in early January 2021 in the Delaware Chancery Court, seeking to enact their contractual obligation of a buyback clause to the value of their undisclosed investment sum.

However, just three months later in April, the court ruled in favor of Ripple and against the plaintiff, Tetragon, putting an end to the financial dispute.

In choosing to willingly purchasing the shares from Tetragon, SBI Holdings and Route 66 Ventures, it implies that Ripple is seeking to enhance their financial strength, a sentiment which Garlinghouse eluded to in a recent tweet thread.

“Even with 2021’s headwinds, it was our best year on record”, he stated, alongside revealing that their $1 billion bank balance position places them in the “strongest we’ve ever been.”

Alongside the news of buyback and valuation, Garlinghouse also shared optimism for the future of RippleNet and Ripple X, the latter of which is posed to enhance the utility of the XRP Ledger in an array of emerging sectors, including nonfungible tokens, central bank digital currencies, as well as interoperable, multi-chain functionalities, among others.

Cointelegraph reached out to Ripple for comment but did not receive a response at publishing time.