Back in December 2020 when crypto was at one of its highest-ever hikes, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple. Allegedly, Ripple was selling XRP worth over 1.38 billion USD without registering a securities offering.
Following this charge, Ripple lost business with renowned exchanges including the second-largest money transfer service, MoneyGram.
It is believed that Ripple lost business and market to a huge extent. It might be true to a certain extent, but it is not true anymore.
Brad Garlinghouse – the CEO of Ripple – says that Ripple was hit hard financially after SEC filed a lawsuit. But the company is now expanding its uses for XRPs technology.
At the Consensus by CoinDesk in its 2021 conference last week, Garlinghouse said that “In Southeast Asia, one of our fastest-growing segments, we see activity growth 10X year on year.”
Before SEC filed the claim in December, the quarter-on-quarter growth of the company was around 40 percent in 2020.
Despite the SEC claim, Ripple is enjoying fairly strong support across Asia, including Japan, where it is looking forward to serving in the domain of Central Bank Digital Currencies (CBDCs).
The SEC Lawsuit
The claim is still in the investigation phase. However, the CEO of Ripple is quite positive about the outcomes of these claims. Furthermore, he showed satisfactory remarks about the process and said that “I feel really good” and that the judge clearly understood them and their case.
He further added that they have been asked for transparency of the last 2 to 3 years JUST for regulatory clarity, which, he thinks, is actually progress.
Garlinghouse also criticized the leadership in the US and applauded that of UAE, UK, Singapore, Japan, and Switzerland for their support for investors and entrepreneurs.
He remarked, “One of the great ironies about this whole thing is the SEC’s mission is to protect investors and in this particular case you have the exact investors they purport to protect having filed a lawsuit against them.”
According to him, this lawsuit has affected not only Ripple or XRP but the entire crypto industry of the US.
When asked about going public, Garlinghouse hinted that there are definitely high chances of going public. However, it would be much easier to do so after getting the ‘regulatory clarity’ from this lawsuit.