Garlinghouse reassures investors that Ripple will continue to fight to get regulatory clarity for the U.S. crypto space.
Ripple’s CEO Brad Garlinghouse has reassured investors that the company will aggressively engage the SEC in a legal battle to ensure that the entire U.S. crypto industry gets clear rules.
Garlinghouse made this known in response to a tweet by Ripple’s General Counsel, Stuart Alderoty. Earlier today, Alderoty informed XRP holders that the Silicon Valley blockchain company had publicly filed its redacted reply to the SEC’s opposition to its summary judgment motion.
Commenting on Ripple’s latest filing, Garlinghouse said:
“I said it on day 1; we will aggressively fight to get clear rules for the entire industry in the U.S.”
He congratulated the Ripple team for helping the company reach the summary judgment stage, adding: “Ripple stood strong and withstood the SEC’s onslaught. I look forward to being on the right side of justice.”
Alderoty Reacts to Ripple’s Recent Filing
In what Alderoty described as Ripple’s final submission, the Silicon Valley tech company filed its redacted summary judgment reply yesterday. Alderoty added that Ripple is proud of the defense it has put up against the SEC in the past two years.
“We have always played it straight with the Court. Can’t say the same for our adversary,” Alderoty said.
Ripple and SEC Publicly File Summary Judgment Replies
Ripple noted in a reply that the SEC’s opposition brief confirms that the court should grant a judgment in the company’s favor.
According to Ripple, the SEC cannot prove that its XRP sales from 2013 to 2020 constitute an investment contract offer. Ripple slammed the SEC, saying it mischaracterized its case by claiming to have been declared the winner in security cases where the essential ingredients of the Howey test are not present.
“Ultimately, the SEC cannot point to a single case finding an investment contract without the ‘essential ingredients’ identified in Howey. And it is undisputed that the case has none of them,” Ripple stated.
On the other hand, the Securities and Exchange Commission highlighted three facts proving that the company’s XRP sales constituted an investment contract offer. Per the SEC, Ripple confirmed that it received $2 billion from investors in exchange for XRP. Furthermore, the SEC claimed that Ripple did not oppose the “common enterprise” and “the expectation of profit from the efforts of others” ingredients of the Howey test.
The SEC noted:
“None of the defendant’s arguments to the contrary precludes summary judgment. Defendants’ primary tactic is to deflect controlling precedent with fictional tests, muddy the facts, and shift blame to the SEC.”