It was recently reported that Ripple Labs would spend roughly $200 million defending the SEC lawsuit. However, top venture capitalist Jason Calacanis has claimed that the San Francisco-based blockchain payments firm would have spent less if it only registered XRP as a security.
Ripple CEO Brad Garlinghouse did not hesitate to criticize Calacanis, alluding to his lack of securities laws knowledge.
“XRP Is Obviously A Security”
It all started when well-known tech investor and podcaster Jason Calacanis commented on Brad Garlinghouse’s recent interview, revealing that Ripple’s courtroom battle with the U.S. Securities and Exchange Commission is set to cost his company a lot staggering $200 million.
In Jason’s view, XRP is “obviously a security”, adding that it would have cost Ripple way less if it went to the SEC and registered the token as a security. He added that the company should have just “played by the rules” like other participants in the crypto industry.
The SEC — which is currently going after crypto like never before — accused Ripple of violating federal securities laws. The specific complaint revolves around the firm’s sale of the XRP cryptocurrency without obtaining prior registration with the watchdog agency.
In response, the Ripple chief questioned Jason’s understanding of securities laws and noted that he was known for making controversial statements and taking aim at topics without proper knowledge. Garlinghouse also indicated that the VC’s assertion was both “embarrassing” and “hilariously wrong” given that U.S. authorities have not provided sector-specific rules for registering digital assets.
More Support For XRP
The heated exchange between Ripple and Jason spotlights the ongoing debate surrounding the security status of XRP and the lack of a clear rulebook for cryptocurrencies in the United States.
Attorney John E. Deaton, who is representing XRP holders as amicus curiae, also contributed to the argument initiated by Jason. Deaton said the claim that Ripple sold XRP as a security is one thing, while the claim that XRP, which is basically a line of code inside the software, is a security is another thing.
The legal expert also asked where other cryptocurrencies such as Ethereum (ETH), Cardano (ADA), Algorand (ALGO), and Stellar (XLM) have registered for they not to be facing the same attack from the SEC.
The three-year battle between the SEC and Ripple — possibly coming to an end soon — is expected to set a precedent for the treatment of cryptocurrencies, particularly altcoins, under U.S. securities and commodities laws.