Ripple’s $200M Lawsuit Costs & Dubai Expansion Strategy
Brad Garlinghouse, the chief executive officer of Ripple, stated that the company will have spent $200 million to defend itself against the U.S. Securities and Exchange Commission lawsuit. The SEC initiated a Ripple lawsuit and accused its CEO and co-founder of violating SEC regulations by trading XRP without filing it with regulators. Ripple contests the SEC’s litigation on the grounds that XRP must be deemed a digital currency and not a security.
Garlinghouse stated in a recent interview at CNBC at the Dubai Fintech Summit 2023 that it had invested $200 million battling the SEC considering the lawsuit in progress. He mentioned the video recording of the SEC chairman stating that 75% of digital assets are commodities; however, he now asserts that these are securities. Garlinghouse added that he seeks the authority of the SEC head and prioritizes power over sound economic policy for the United States.
Ripple is not the only company against which the SEC has filed a lawsuit. The regulators recently informed Coinbase (NASDAQ: COIN) that they intend to take action against the exchange for accused security violations. The SEC’s actions disrupt the cryptocurrency market. And according to some experts, it could force firms to operate out of the United States. He pointed out that Dubai is becoming the main financial hub for the growth of cryptocurrency innovation after the Dubai Fintech Summit, which opens up various opportunities. The Ripple network will expand to Dubai. According to CoinMarketCap, the current trading value of Ripple XRP is approximately $0.4299, a drop of over 6.15 percent.
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