“I actually think the technology is playing out. It’s something that we have to embrace and figure out a way how we can make sure there is regulatory capture for investor protections.”
VARA is the Virtual Asset Regulatory Authority for Dubai.
Brad Garlinghouse Wraps Up Swell in Dubai
Ripple CEO Brad Garlinghouse wrapped up Ripple Swell in a fireside interview with CNBC.
Garlinghouse highlighted Ripple’s three consecutive court victories against the SEC. These included the Programmatic Sales ruling, the decision against the SEC interlocutory appeal, and the dropped charges against co-founder Chris Larsen and the Ripple CEO.
Garlinghouse also referenced the Grayscale win on appeal against the SEC and the judge calling the SEC arbitrary and capricious.
Regarding the SEC v Ripple case, Garlinghouse said the SEC has lost sight of its mission to protect investors. The Ripple CEO welcomed the fact that the judge will decide on remedies relating to the remaining charges of XRP sales to institutional investors.
Garlinghouse views the SEC v Ripple case as positive for the US digital asset space.
The Ripple CEO shared his thoughts about the success of Ripple Swell on X (formerly Twitter), saying,
“Very proud of the Ripple teams that made Swell happen – it really takes a village. We chose Dubai specifically because the city has become a global leader, attracting entrepreneurship through clear regulatory frameworks, pro-innovation policies, and more. We’ll be back!”
Investors Await Court Schedule for Remedy Discovery
On Thursday, the SEC and Ripple jointly filed a briefing schedule. The briefing schedule outlined timelines for remedial discovery and more. Significantly, failure to settle would leave the court to decide the penalty for XRP sales to institutional investors.
The briefing schedule gives the parties ninety days from the date of the court scheduling order to complete the remedies discovery process.
On Saturday, CryptoLaw US founder and amicus curiae attorney John E. Deaton had this to say about the SEC target of $770 million,
“[…] Ripple will pay a lot less than $770M. The Supreme Court ruled disgorgement is not punitive in nature and cannot exceed “net profits” from the sales. A company can deduct legitimate business expenses. Brad Garlinghouse and Stuart Alderoty can think of a $150M in legitimate business expenses they would love to deduct. After deducting foreign sales, sales to accredited investors, and ODL transactions, if the judge deducts the $150M in legal fees Ripple paid, the SEC might owe Ripple money.”
Ripple and the Crypto community have an optimistic outlook on penalties. However, an SEC appeal of the Programmatic Sales ruling may create uncertainty and impact the appetite for XRP.