‘Cuckoo for Cocoa Puffs’: Ripple CEO rips SEC as XRP soars
Important takeaways
- Ripple CEO Brad Garlinghouse went on Fox Business today to discuss the latest developments in the company’s lawsuit.
- Garlinghouse said the SEC had “lost its way” and was “cuckoo for cocoa puffs”.
- XRP surged 17% ahead of Garlinghouse’s TV appearance.
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XRP rises after Brad Garlinghouse, CEO of Ripple Labs, laid the SEC in a TV interview today. Ripple is currently embroiled in a lawsuit from the SEC, which claims it sold $1.3 billion in unregistered securities. However, many argue that the SEC has mishandled the case at several critical steps.
“Reason exceeds its authority”
Today, Ripple CEO is Brad Garlinghouse tired on Fox Business that the Securities and Exchange Commission (SEC) had “lost its way” and was “cuckoo for cocoa blowers”.
“When the summary judgments came out, people realized that maybe the SEC really is overreacting,” Garlinghouse said. “They really don’t follow a faithful allegiance to the law – that’s a quote from the judge in this case.” He further added, “We believe [the judge] have the necessary information to make the decision, and we believe it is very clear that the SEC is grossly overstepping its authority.”
Ripple’s token, XRP, was already up 6% on the day, rising another 18% ahead of Garlinghouse’s appearance and comments. In accordance CoinGeckoit currently trades at $0.48, up 61.64% from its summer low – but still down 85% from its all-time high of $3.40, which it reached in January 2018.
SEC archived a lawsuit against Ripple, Garlinghouse and Ripple co-founder Christian Larsen in December 2020 for allegedly selling more than $1.3 billion in unregistered securities. But Ripple has continuously argued that XRP fails the Howey test and therefore does not meet the criteria to be considered a security.
Garlinghouse repeated that claim on TV today. “The first step to decide [whether XRP could] be a security, you must have an investment contract. Our point is that Ripple has no contract. Who is the contract with? It is not a written contract, it is not an oral contract, it is not an implied contract.” U.S. Magistrate Judge Sarah Netburn, who is overseeing the case, has also recently Narrow SEC over their litigation tactics, calling them hypocritical. A date has not yet been set for the ruling.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies.
