Brad Garlinghouse Confirms Ripple’s Plan to Go Public after SEC Lawsuit Is Concluded
AI Trading

The lawyer representing the CEO of Ripple, Brad Garlinghouse, has presented two strong arguments to dismiss the lawsuit filed against Ripple by the United States Securities and Exchange Commission (SEC).

It can be recalled that Ripple, the cross-border payment firm, and the two of its top executives were sued by the U.S. SEC in late December 2020, for illegal sales of the digital token XRP deemed as an unregistered security by the agency.

Read Also: CryptoCompare: XRP Surpasses Bitcoin in Trading Volume, Becoming Most-Traded Crypto-Asset

In a letter sent to Judge Analisa Torres on 3rd March 2021, Matthew Solomon, the Ripple CEO’s legal counsel describes the case as “regulatory overreach, plain and simple.”

AI Trading

Solomon’s Arguments in an Attempt to Dismiss the Lawsuit

In the first argument, Solomon claimed that the SEC fails to recognize the economic realities of Ripple’s transactions in the digital token XRP, the XRP markets, and Ripple’s business. According to Solomon, each of them exhibits none of the traditional characteristics of an investment contract under SEC v. W.J. Howey Co., 328 U.S. 293 (1946).

He also pointed out that in both 2015 and 2020, the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) referred to XRP as a virtual currency, which required the payment firm to implement anti-money laundering controls that cannot be applied to securities transactions.

The second argument is in defense of the CEO Brad Garlinghouse. He said, “Not satisfied simply to try to fit the square peg of XRP into the round hole of securities laws, the SEC has also chosen to target Mr. Garlinghouse with personally violating the securities laws.”

In defense of Brad Garlinghouse, Solomon said the claim that the Ripple CEO aided and abetted sales of XRP by Ripple failed to meet the necessary legal requirements.

Read Also: Ripple, Coinbase, Bitfinex Moved Almost 100 Million XRP

According to the lawyer, even if transactions of XRP initiated by Garlinghouse are deemed to be investment contracts, SEC still fails to properly prove that they fall within the scope of the Securities Act.

To make his claim more factual, he stated that the Securities Act is only applicable to offers and sales of securities within the United States, not those meant for foreign exchanges.

Follow us on Twitter, Facebook, Telegram, and Download Our Android App

AI Trading produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.

Tobi Loba

By Tobi Loba

Tobi-Loba is a creative and an award-winning writer with over 5 million readers from all over the world. She has B.A in English and Literature from a reputable University and currently studying for her M.A in the same field. She recently became a contributor at Herald Sheets in order to satisfy her thirst in reporting crypto and blockchain occurrences, the interest she built over the years.