In a Dec. 22 blog post, Garlinghouse claimed that the legal action against the XRP cryptocurrency brought by the United States Securities and Exchange Commission is an “assault on crypto at large.”
According to Cointelegraph, the executive is confident that the regulatory action will have a “snowball effect” on the industry as a whole, potentially affecting major players, such as Coinbase and all other cryptocurrencies, not just Bitcoin and Ether:
“Ripple, Chris and I may be the ones named in the filing, but this is an assault on crypto at large. In this case, XRP is a proxy for every other ‘alt-coin’ in the space. From there, you have a snowball effect; this isn’t good news for any market maker, exchanges like Coinbase, etc. This sets a terrible industry-wide precedent for any company working with a digital asset.”
Garlinghouse also say that the SEC is “engaged in an all-out attack on the crypto industry,” despite the regulator stating that it is committed to fostering innovation in the digital asset space.
But Ripple will prove their case in the court, Garlinghouse assured. The CEO highlighted that XRP is not an “investment contract” as holders have no connection with Ripple. Garlinghouse also emphasized that the market value of XRP is not correlated with Ripple’s activities unlike securities. “We are not only on the right side of the law, but we will be on the right side of history,” Garlinghouse said.
The CEO stated that the SEC’s action further pushes Ripple to move their headquarters outside the U.S. Nevertheless, the company says it still looks forward to working with the new government in order to find a solution.
On Dec. 22, the SEC filed a complaint with federal district court in Manhattan, alleging that XRP is a security and accusing Ripple of violating laws by raising over $1.3 billion.
Amid reports on the upcoming legal action against Ripple, XRP tumbled 21% on Dec. 22. At publishing time, XRP is down 22% over the past 24 hours, trading at around $0.35.