Ripple CEO expects SEC lawsuit against XRP to be resolved in June
Brad Garlinghouse, CEO of Ripple, expects the company’s longstanding dispute with the U.S. Securities and Exchange Commission (SEC) to come to an end in June 2023 and remains confident of a positive decision.
Speaking to CNBC on Jan. 18 at the World Economic Forum in Davos, Switzerland, Garlinghouse said a verdict could be delivered as early as June 2023 as both sides have “completely completed and made their case” in the district court.
“We are waiting for the decision of the judge, of course, in 2023. In fact, you have no control over when the referee makes his decisions. But I’m optimistic that we’ll have a closure there over the next few single digit months.”
While Garlinghouse and investors believe that facts, law, and court will eventually side with Ripple, Ripple’s CEO also took the opportunity to ridicule the SEC’s “awkward” behavior demonstrated throughout the trial, noting:
“The behavior of the SEC has in some cases embarrassed the US citizen. Just some things that happened, like you’re kidding.”
Garlinghouse also claimed that the regulator betrayed the company as it filed a lawsuit despite their attempts to meet with them three times seeking clarity on regulation:
“They never once told me that we think XRP could be a security. So to come back later and say hello all the time, we thought XRP was a security that we just didn’t tell you about… it doesn’t look like a real public-private partnership.”
Noting that the outcome of the case is also of great importance to the cryptocurrency industry, Garlinghouse reiterated that Ripple will only agree to a deal if it becomes clear that XRP is not a security.
However, “the SEC and Gary Gensler have been very candid about how it treats almost all cryptocurrencies as safe,” Garlinghouse said, “which leaves very little room on the Venn diagram for calculations.”
Garlinghouse speaks to CNBC at the World Economic Forum in Davos, Switzerland. Source: CNBC.
Garlinghouse added that the SEC should note that some of the most cryptocurrency-friendly countries are developing more “positive” regulation that does not stifle innovation.
Among the countries he praised were the United Arab Emirates, Japan, Singapore, Switzerland and the United Kingdom.
The lawsuit was filed by the SEC in December 2020 alleging that Ripple illegally sold its XRP token as an unregistered security.
Ripple has long disputed this claim, arguing that it is not an investment contract under the Howey test.
If both parties cannot reach an agreement, the New York District Court will make a separate decision or refer the case to a jury in court.
Bryden Lindrea, Cointelegraph
Braden Lindrea is a technical writer and freelance journalist based in Australia. He is primarily interested in how blockchain technology and cryptocurrencies will destroy the traditional financial system.
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