Ripple and the SEC: CEO Brad Garlinghouse with a new move
Ripple CEO Brad Garlinghouse always exuded composure when it came to the US Securities and Exchange Commission’s lawsuit. Now his lawyers have filed a motion to dismiss the case.
For some time now, the crypto scene has been looking at the smouldering dispute between the US Securities and Exchange Commission (SEC) and Ripple. The agency’s accusation is that the company run by the twin Garlinghouse brothers did not label its Bitcoin Formula cryptocurrency Ripple (XRP) as a security. A final decision in this matter is still pending. The tension is all the greater because a new man, Gary Gensler, will soon be at the helm of the Securities and Exchanges Commission (SEC). Meanwhile, several crypto exchanges, including Kraken, have already suspended trading in Ripple.
Ripple CEO Brad Garlinghouse does not contest this. He continued to spread optimism and was always calm about the proceedings. Now, however, his lawyers are going on the offensive for their part. They have written a letter to federal judge Analisa Torres signalling the manager’s intention to dismiss the lawsuit filed against him by the US Securities and Exchange Commission in December. This document can be viewed on Ripple’s homepage.
The letter claims that filing a lawsuit against Garlinghouse amounts to „regulatory overreach“. The SEC has since amended the original complaint against Garlinghouse. In addition to Garlinghouse, his ex-companion and co-founder of Ripple Chris Larsen has also become the focus of the investigation. The authority accuses the two managers of targeted price manipulation.
Ripple boss: „The burden of proof is on the SEC“.
The lawyers argue that even the amended complaint is no more valid than the first version. They say the SEC is ignoring „the economic realities“ of the XRP sales in question. Garlinghouse’s lawyers, meanwhile, argue that he cannot succeed in proving sufficient intent or knowledge of wrongdoing.