Ripple CEO Brad Garlinghouse recently shared his perspective on the ongoing legal battle with the US Securities and Exchange Commission (SEC), predicting a lengthy appeals process. His insights were shared during a discussion with Bloomberg on July 15, 2023.

On July 13, a court ruling partially upheld Ripple Labs in a lawsuit filed by the SEC in 2020. The court’s decision established that Ripple’s XRP token does not constitute a security in relation to retail sales on digital asset exchanges. . However, the ruling also clarified that XRP meets the definition of value when sold to institutional investors, per the Howey test.

Despite the institutional sales ruling, Garlinghouse said this aspect of the lawsuit was minor. He suggested that any attempt by the SEC to appeal the retail sales ruling would only reinforce the court’s initial decision.

Garlinghouse also criticized the SEC’s tactics, likening them to a bully targeting less powerful entities in the cryptocurrency industry that lacked the resources for a strong defense. He noted that Ripple’s lawsuit marked a first-time setback for the SEC in a case involving cryptocurrencies.

The Ripple CEO noted that the SEC lawsuit initially created a climate of uncertainty among US cryptocurrency exchanges, promoting a cautious wait-and-see attitude due to market turmoil. He suggested that the SEC intentionally fostered this confusion to consolidate its power, which in turn stifled American innovation.

Garlinghouse argued that the SEC’s focus on power and politics has overshadowed the need for strong policies and clear regulatory guidelines. He believes that this approach has discouraged American entrepreneurs and investors from fully participating in the cryptocurrency market and blockchain technologies.

The broader implications of the Ripple case underscore the need for regulatory clarity in the crypto industry.