Ripple CEO Brad Garlinghouse said that the company tried to reach a settlement with the US Securities and Exchange Commission (SEC), but to no avail, and plans to continue settlement negotiations with the new government.
In a tweet on Thursday, the CEO and his general counsel Stuart Alderoty answered questions surrounding the unregistered securities lawsuit filed by the US Securities and Exchange Commission against the company last month.
Alderoty said on Twitter: “Our legal team will soon announce that it will provide a preliminary response to the SEC’s unconfirmed allegations within a few weeks.”
Garlinghouse said that no one will remain silent, and we will not give up this fight.
Garlinghouse responded to five key issues that he believes are relevant to the case, concerning the lack of settlement and whether Ripple will pay the entity to list and use XRP. He pointed out that Ripple is still seeking a solution.
Regarding why it failed to reach a settlement with the SEC, Garlinghouse wrote on Twitter today: “Cannot disclose details, but I know we have tried-and will continue to work with the new government-to resolve this issue so that the XRP community can Continue to innovate, protect consumers and maintain an orderly market.”
He did not specify whether Ripple will incentivize exchanges to list XRP, but he said that Ripple has no right to decide which exchanges to list or delist XRP. Since the SEC litigation, many exchanges have suspended or delisted XRP trading.
On the consumer side, Ripple legally incentivizes some customers to use the network. According to Garlinghouse, the network is “building a payment network 101.”
Garlinghouse also mentioned the recent lawsuit filed by Ripple investor Tetragon, which is the leader of the company’s Series C financing. Tetragon has submitted an application for Ripple to redeem its Series C preferred shares.
Garlinghouse said: “We are disappointed that Tetragon (holding a 1.5% stake in Ripple) tried to exploit itself through the SEC’s allegations.”
At the same time, the SEC’s case against Ripple will advance in February, when the two parties will hold a pre-trial meeting on February 22. The joint letter describing the facts of the case will expire on February 15.
