• Ripple CEO Brad Garlinghouse has said that he is optimistic about the company getting a ruling about its legal dispute with the Securities and Exchange Commission (SEC) soon.
• The legal spat between the U.S. SEC and Ripple started in 2020 when the regulator alleged that the crypto company and its executives had unlawfully sold XRP, a crypto developed in 2012, to investors without registering it as a security.
• Ripple denied the allegation saying that the XRP token should not be viewed as an investment contract and is used in the company’s business of facilitating cross-border transactions between banks and other financial entities.
Ripple CEO Brad Garlinghouse recently expressed his optimism about the resolution of the legal dispute between the company and the U.S. Securities and Exchange Commission (SEC). During an interview with CNBC’s Squawk Box Europe, Garlinghouse, who is also a defendant in the legal drama, said he expects the ruling to come in the first half of 2023.
The legal spat between Ripple and the SEC started back in 2020 when the regulator accused the company and its executives of unlawfully selling XRP, a crypto developed in 2012, to investors without registering it as a security. In response to the allegations, Ripple denied any wrongdoings and stated that the XRP token should not be viewed as an investment contract and is used in the company’s business of facilitating cross-border transactions between banks and other financial entities.
Both the accuser and the defendant submitted their last series of briefs in December 2022. While the SEC is seeking a summary judgement in its favor, Ripple is arguing that the court should dismiss the case. In the meantime, Garlinghouse is optimistic that the judge will make a ruling in the first half of 2023. He noted that he feels “very good about where we are relative to the law and the facts.”
The legal dispute between Ripple and the SEC has been closely watched by the crypto community, as the ruling could potentially have far-reaching implications for the industry. If the court rules in favor of the SEC, it could set a precedent that could affect the future of crypto regulation in the U.S. On the other hand, if Ripple wins the case, it could open the door for other crypto companies to challenge the SEC’s authority.
It remains to be seen how the case will play out, but it is clear that the crypto community will be closely monitoring the developments. Although Garlinghouse is optimistic about the resolution of the case, it is unclear exactly when the judge will issue a ruling. In the meantime, Ripple will continue to fight for its rights in court.