The legal fight between Ripple Labs Inc and the SEC or Securities and Exchange Commission is known for taking sharp turns, but the recent smell of confidence in Ripple clearly indicates where the case will turn.
As the lawsuit continues to be delayed, the CEO of Ripple, Brad Garlinghouse, has threatened the possibility of leaving the country if the court rules in favor of the regulatory body.
Ripple will leave the U.S. if it loses
In an interview with Axios Media during the Collision Conference in Toronto, the CEO said that if they lose the case, Ripple will not consider leaving the U.S. but will do so. Garlinghouse went on to add that losing the case will not impact the broader crypto industry. He stated:
“If you think about how the world is operating right now, it’s as if the case has been lost other than a few other exceptions […] So if we lose, if Ripple loses the case, does anything change?”
Notably, the lawsuit was filed in December 2020 by the SEC with allegations that Ripple Labs, Brad Garlinghouse, and Chris Larsen used the XRP token as unregistered security to raise $1.3 billion illegally.
Surprisingly, this is the first time in months that Garlinghouse talked about losing the case. Earlier this year, he said that Ripple is making good progress in the case. After Judge Sarah Netburn denied the SEC’s request to rethink protecting some documents proving a speech by its former Director William Hinman stating that Bitcoin and Ether are not securities, Ripple seemed to have a major sign of victory in the case against the SEC in mid-April. The company hinted at winning the case and called it “a very big win” for the company as well as for the crypto industry. Moreover, in May, the company said that it is planning to launch an Initial Public Offering or IPO after the settlement with SEC.
The SEC, however, managed to flip Ripple’s potential victory around by asserting that Hinman should not have given this speech because he had particular conflicts of interest with those cryptocurrencies. As a result, the lawsuit is still making headlines.