Ripple pegs SEC lawsuit costs at $200M; plans Dubai expansion
CEO Brad Garlinghouse commented on his firm's attempts to find favorable regulation.
Ripple CEO Brad Garlinghouse discussed his company’s regulatory challenges at the Dubai Fintech Summit, CNBC reported on May 8.
There, Garlinghouse described the scale of Ripple’s ongoing legal conflict with the U.S. Securities and Exchange Commission (SEC). He said:
“With the SEC … we will have spent $200 million defending ourselves against a lawsuit, which from its very beginning [people have said] doesn’t make a lot of sense.”
Garlinghouse added that this was the first time that he had shared the cost of the legal conflict publicly and argued that the U.S. is “definitely stuck” in terms of regulation.
In a separate tweet, Garlinghouse said that Ripple will expand to Dubai in response to the U.S. regulatory landscape. He said that 20% of Ripple’s customers are based in the MENA region, which has “clear regulatory regimes” and is becoming a global financial hub.
Ripple’s difficulties began in December 2020 when the SEC accused Ripple and its executives of violating securities regulations by selling XRP tokens.
Ripple is just one company that is attempting to fight the SEC. Crypto exchange Coinbase is also preparing to take on the SEC, as it has received a Wells notice from the regulator.
It is still unclear whether either challenge will succeed.