NEWSLETTER
The long and protracted battle between fintech firm Ripple and the US Securities and Exchange Commission may be coming to an end, according to the company’s chief executive officer.
speaking to CNBC At the World Economic Forum in Davos, Switzerland, on January 18, Garlinghouse said the judges are unlikely to rush a ruling, adding:
“We are optimistic that this will certainly be resolved in 2023, and perhaps [in] The first half. So we’ll see how it develops from here. But I feel very good about where we are in relation to the law and the facts.”
My take on Davos 2023: I honestly think it’s healthy to see the change in the way cryptocurrencies appeared this year. People are focusing on utility and how these technologies solve real problems, the only way the industry will move forward. Great for catching up @ArjunKharpal, @CNBCJou! https://t.co/sns4PX5q3O
—Brad Garlinghouse (@bgarlinghouse) January 18, 2023
Ripple Case could end soon
The SEC-initiated lawsuit 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 filed their final round of briefs seeking summary judgment for the case. They accused each other of manipulating the law.
The judge could enter a sentence that could involve an out-of-court settlement and avoid a trial. Garlinghouse said he expects such a decision to come “sometime in the next few single-digit months,” possibly as early as June.
“We have always said that we would love to reach an agreement, but it requires one very important thing, and that is that, going forward, it is clear that XRP is not a security.”
SEC Chairman Gary Gensler has maintained that XRP, and most all crypto assets, are securities. Therefore, in his opinion, they must register and comply with the same rules as brokerage firms.
“That leaves very little room on the Venn diagram for liquidation,” the Ripple executive commented on Gensler’s myopic views on cryptocurrencies.
Gensler has also suggested that Ethereum is a security because of its staking mechanism, which results in “the investing public anticipating gains based on the efforts of others.”
Garlinghouse stressed that a negative result for Ripple will affect the entire crypto industry and force companies to leave the country.
“Something that I’ve heard here in Davos repeatedly is how important this is not only to Ripple… but also, really, to the entire cryptocurrency industry in the United States.”
XRP Price Outlook
Ripple’s native token, which is at the center 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 payment currency hasn’t enjoyed much of a rally like its siblings, only gaining 9% over the past week. Furthermore, XRP is still 89% below its all-time high from January 2018.
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