Ripple’s CEO, Brad Garlinghouse, and President, Monica Long, have announced plans to expand the company’s team beyond the borders of the United States in response to their ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
The lawsuit between Ripple and the U.S. SEC remains one of the hottest topics in the cryptocurrency sphere. This legal dispute began back in 2020 when the SEC accused Ripple and its management team of violating regulations by using XRP, an alleged unregistered security, for fundraising purposes.
Since then, both parties have been engaged in a fierce legal exchange, with Ripple currently holding the upper hand. Let’s delve into recent developments over the past few months.
Ripple achieved a significant victory in mid-July when a U.S. judge ruled that the majority of its XRP sales did not qualify as unregistered securities offerings. This decision sent ripples of excitement throughout the entire digital asset sector.
This partial victory also had a positive impact on the price of Ripple’s native token, XRP, which experienced a substantial surge shortly after the judge’s ruling.
Nevertheless, the U.S. SEC expressed strong dissatisfaction with this ruling and formally lodged an appeal a few days ago. Their disagreement primarily revolves around two specific types of XRP sales: “programmatic” sales (offered to the public) and those categorized by the court as “other distributions.” Judge Torres had already determined that the former did not violate securities laws.
The ongoing uncertainty surrounding the lawsuit’s outcome has prompted Ripple to redirect its focus towards other countries. Recently, CEO Brad Garlinghouse stated that the majority of new hires will be based in countries such as Singapore, Hong Kong, Dubai, and the UK, rather than in the United States.
Ripple’s President, Monica Long, also commented on the ongoing legal battle, reassuring that the company is prepared to see it through to the end:
“We are committed to continuing our fight in this case.”
She went on to emphasize the significance of the court’s decision, stating that it opens doors for Ripple to expand its business globally:
“We also gained clarity through this lawsuit. The judge’s order in this case unequivocally stated that XRP, by itself, is not considered a security. This, in turn, provides us with the opportunity to significantly expand our business, not only within the U.S. but on a global scale.”
