Cryptocurrency

SEC lawsuit against Ripple may end by summer: Ripple CEO

Hull Invest

Ripple CEO Brad Garlinghouse has said the legal dispute between his company and the U.S. Securities and Exchange Commission is likely to end in the first half of 2023.

upon January 18thGarlinghouse spoke to CNBC at the WEF’s Davos conference.

“We are optimistic that this will definitely be resolved in 2023. [in] first half. So let’s see what happens from here. But I am very happy with the relative relationship between law and facts. “

Garlinghouse added that Ripple probably wouldn’t settle with the SEC, explaining that the company would only settle if the SEC determined XRP wasn’t a security. He said the SEC and its chairman, Gary Gensler, have made it clear that almost all cryptocurrencies are considered securities and that there is “little room” for settlement.

Instead, Ripple and the SEC will wait for a judge’s decision. Garlinghouse said the case is now fully explained in court.

In a separate interview with CNBC today, Garlinghouse called the SEC’s actions “embarrassing” and argued that both the facts of the case and the law supported Ripple.

The SEC indicted Ripple in December 2020, arguing that the sale of XRP amounted to an investment contract and an unregistered token sale. Ripple soon pledged that he would contest the SEC charges, and the lawsuit progressed slowly.

In recent months, many companies have started supporting Ripple. In particular, Coinbase suggested that the SEC lawsuit caused the retail cryptocurrency trader to lose his $15 billion.

Most of the crypto companies targeted by the SEC have opted to settle immediately, making Ripple one of the few to fight regulators. Other attempts to resist the SEC have been unsuccessful. Canadian company Kik lost its battle with the SEC over its Kin token in 2020. Telegram similarly lost a battle with regulators over its ICO in 2020. His LBRY on video platform also his SEC in November 2022.

As such, Ripple’s long-running legal battle is expected to set a precedent for the cryptocurrency industry and influence the SEC’s willingness to pursue similar lawsuits. Ripple appears to be in a stronger position than some in the past, but its victory is still far from certain.

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