Ripple CEO Reveals $200 Million Spent on SEC Lawsuit

Ripple Labs CEO, Brad Garlinghouse, has disclosed new information regarding the company’s ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC). In a fireside chat with CNBC at the Dubai Fintech Summit, Garlinghouse revealed that Ripple is expected to spend $200 million defending itself against the regulator’s allegations.

Ripple’s Stance on U.S. Crypto Regulations

Garlinghouse expressed disappointment with the current state of U.S. crypto regulations, stating, “It’s sad. I have sadness about this.” He believes that countries such as Dubai, Singapore, and Switzerland are surpassing the U.S. due to their clear regulatory frameworks, which puts them on track to become global financial capitals. Garlinghouse criticized the SEC’s approach, arguing that politics have been placed ahead of sound policy, hindering investment in the U.S. economy.

The Ripple-SEC Lawsuit

The SEC filed a lawsuit against Ripple, Garlinghouse, and co-founder Chris Larsen in December 2020, alleging they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering. Ripple and its executives maintain that XRP is not security. Garlinghouse believes that winning the lawsuit will bring clarity to XRP’s status, but the broader crypto industry still requires clear regulations to thrive in the U.S.

Timeline for Legal Battle Outcome

Garlinghouse anticipates a decision in the lawsuit within three to six months. He also shared that Ripple is expanding its presence in Dubai, citing the region’s clear regulatory regimes and the fact that 20% of Ripple’s customers are based in the Middle East and North Africa (MENA) as reasons for the expansion.