In the latest development, Ripple Labs stated that nearly 80% of its hiring will be outside of the United States amid Ripple’s ongoing dispute with the U.S. Securities and Exchange Commission (SEC).
Ripple’s Chief Executive Officer Brad Garlinghouse said that in jurisdictions such as Hong Kong, Singapore, the UK, and Dubai, “governments are partnering with the industry and you’re seeing leadership, they’re providing clear rules and you’re seeing growth
Garlinghouse’s comments came on the sidelines of the ongoing crypto conference in Singapore. Despite the court ruling in favor of Ripple, the US SEC has been reluctant to prove that XRP is a security.
The SEC, under the leadership of Chair Gary Gensler, has taken a firm stance on digital assets following the market turmoil in 2022 and subsequent incidents like the FTX exchange’s collapse. Gensler maintains that most tokens should be considered securities and fall within the agency’s regulatory oversight.
Ripple has contested an SEC request to appeal a court ruling that classified tokens as non-securities when sold to the public. The SEC initiated legal action against Ripple in 2020, alleging that the company had failed to register the XRP token as a security.
The SEC makes a confident assertion, contending that Ripple has not provided any instances where a court found that the interlocutory order did not pertain to a legal matter.
The SEC’s entire argument hinges on the belief that the Second Circuit has, on numerous occasions, allowed interlocutory review to determine whether an instrument qualifies as a “security” in cases that necessitated a thorough examination of the record.
Brad Garlinghouse, Ripple’s CEO, disclosed that the company has expended well over $100 million in legal expenses. He expressed optimism about winning the case, stating, “You have a government that has unlimited resources to keep fighting a fight they’ve already lost.”
