In a recent interview, Ripple CEO Brad Garlinghouse discussed the current legal status surrounding XRP and the significance of recent court rulings.
Overview of Ripple and SEC Court Case
Garlinghouse highlighted the importance of Judge Analisa Torres' ruling in July 2023, which stated that XRP is not a security. He described this decision as 'formative' for the industry.
Clarification on Institutional and Retail Transactions
Garlinghouse clarified that while XRP itself is not a security, contracts involving XRP could fall under securities law if structured as investment contracts. He emphasized, 'The ruling was very clear that no matter what, XRP in and of itself is not a security.'
Recent Developments and Next Steps in the Case
Following the initial ruling, Judge Torres in August 2024 reduced the SEC's penalty from $2 billion to $125 million. However, their joint motions to dismiss appeals and expedite settlement were denied by Judge Torres.
Garlinghouse continues to advocate for clearer regulation for digital assets and expressed hope that a change in regulatory leadership could lead to a more favorable oversight environment.
