The long, drawn-out battle between fintech firm Ripple and the U.S. Securities and Exchange Commission could be coming to a conclusion, according to the company CEO.
Speaking to CNBC at the World Economic Forum in Davos, Switzerland, on Jan. 18, Garlinghouse said that the judges are unlikely to rush a resolution, adding:
“We’re optimistic that this will certainly be resolved in 2023, and maybe [in] the first half. So we’ll see how it plays out from here. But I feel very good about where we are relative to the law and the facts.”
My take on Davos 2023 – I honestly think it’s healthy seeing the change in how crypto showed up this year. Folks are focusing on utility and how these technologies solve real problems — the only way the industry will move forward. Great to catch up @ArjunKharpal, @CNBCJou! https://t.co/sns4PX5q3O
— Brad Garlinghouse (@bgarlinghouse) January 18, 2023
Ripple Case Could End Soon
The lawsuit initiated by the SEC began in 2020 when the regulator accused Ripple and its executives of selling unregistered securities.
Two years later, in December 2022, Ripple and the SEC submitted their final round of briefs seeking a summary judgment to the case. They accused each other of manipulating the law.
The judge could make a ruling which may involve an out-of-court settlement and avoid a trial. Garlinghouse said he expects such a ruling to arrive “sometime in the coming single-digit months,” potentially as soon as June.
“We have always said that we would love to settle, but it requires one very important thing, and that is that, on a go-forward basis, it’s clear that XRP is not a security.”
SEC Chair Gary Gensler has maintained that XRPand the majority of all crypto assets, are securities. Therefore, in his opinion, they need to register and abide by the same rules as stock brokerages.
“That leaves very little space in the Venn diagram for settlement,” commented the Ripple executive on Gensler’s myopic views on crypto.
Gensler has also suggested that Ethereum is a security due to its staking mechanism, which results in the “investing public anticipating profits based on the efforts of others.”
Garlinghouse emphasized that a negative outcome for Ripple will impact the entire crypto industry and force firms to leave the country.
“Something I’ve heard here in Davos repeatedly is how important this is not just to Ripple… but also, really, the whole crypto industry in the United States.”
XRP Price Outlook
Ripple’s native token, which is at the heart of the case, has lost 2.1% on the day. XRP was trading at $0.379 at the time of writing, according to CoinGecko.
The cross-border payments coin has not enjoyed a big rally like its brethren, having only gained 9% over the past week. Furthermore, XRP is still down 89% from its January 2018 all-time high.
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