The cost of Ripple Labs’ defense against the SEC case was recently estimated at above $200 million.
The San Francisco blockchain payments business reportedly spent additional funds than it needed to in order to register XRP as a security, according to prominent venture investor Jason Calacanis.
Brad Garlinghouse, CEO of Ripple, was quick to criticize Calacanis, suggesting that he lacked a basic understanding of securities rules.
In response to Brad Garlinghouse’s recent interview, prominent tech investor and podcast host Jason Calacanis said that Ripple’s legal fight with the U.S. Securities and Exchange Commission would cost the business an eye-popping $200 million.
According to Jason, XRP is “obviously a security,” and registering the coin with the SEC would have been far cheaper for Ripple. He continued, saying the firm was at fault for not having “played by the rules” like other players in the cryptocurrency market.
Ripple was accused of breaking federal securities rules by the SEC, which is cracking down on cryptocurrencies like never before. The particular allegation targets the company’s unregistered offering of the XRP cryptocurrency to the public.
The CEO of Ripple reacted by questioning Jason’s grasp of securities regulations and pointing out that he was renowned for making contentious remarks and attacking subjects without any background information. Additionally, Garlinghouse said that the VC’s claim was “embarrassing” and “hilariously wrong” since U.S. authorities have not developed industry-specific standards for registering digital assets.
The back-and-forth between Ripple and Jason highlights the absence of a clear standard for cryptocurrencies in the United States and the continuing discussion about the security status of XRP.
Jason’s position was expanded upon by amicus curiae attorney John E. Deaton, who is advocating on behalf of XRP holders. Deaton clarified that although it is true that Ripple may have offered XRP as a security, the assertion that XRP itself, which is essentially a line of code inside the program, is a security is something quite different.
The lawyer then inquired as to the registration status of other cryptocurrencies including Ethereum (ETH), Cardano (ADA), Algorand (ALGO), and Stellar (XLM), all of which are presumably safe from an SEC crackdown.
The three-year legal struggle between the SEC and Ripple, which may soon be resolved, is widely seen as an indicator of how U.S. securities and commodities laws will eventually approach cryptocurrencies in general and altcoins in particular.
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