The Ripple boss had previously specified that the lawsuit with the SEC would reach a resolution in the first half of 2023.
The protracted legal battle between the US Securities and Exchange Commission (SEC) and Ripple is expected to finally come to an end in 2023. The case, which began in December 2020, involved the payment protocol and two of its executives: Christian Larsen and Bradley. Garlinghouse. The Commission alleged that the company and the executive sold unregistered XRP tokens, raising $1.3 billion. According to the filing, Ripple began selling unregistered security offerings in 2014 to investors in the US and other parts of the world. The SEC also alleged that Ripple distributed XRP for non-monetary considerations, such as market making services and labor. Further accusations were brought against Ripple, Larsen, and Garlinghouse for failing to protect investors, limiting their access to information to which they are entitled.
While the regulator claims Ripple did not register XRP as a security before offering it to investors, Ripple said the token should not be considered an investment contract. Instead, the team noted that XRP is used in its business to conduct cross-border transactions between banks and other financial institutions.
After several back and forth as the legal war between Ripple and the SEC persists, the matter may finally be resolved this year, 2023. The CEO of the company revealed his expectations that the fight of more than two years will end this year. . Speaking to Bloomberg in an interview on March 2, Galringouse stated:
“Almost two and a half years have passed since that litigation began. We have tried to move as fast as we could. The litigation has been fully reported in federal court and we expect a decision certainly in 2023.”
The Ripple chief had previously specified that the lawsuit with the SEC would reach a resolution in the first half of 2023. In January, he told CNBC’s “Squawk Box Europe” at the World Economic Forum that he was pleased with the current situation “relative to with the law and the facts.” Although Garlinghouse said he is willing to settle, he does not expect the company to settle.
“We have always said that we would love to do a deal, but it requires one very important thing, and that is that, going forward, it is clear that XR is not a security. The SEC and Gary Gensler have been outspoken that they view almost all cryptocurrencies as a security. And that leaves very little room on the Venn diagram for liquidation.”
In his recent statement regarding the expectation of a settlement in 2023, the CEO of Ripple spoke about the adverse effect of the lawsuit on the crypto industry. He believes that Ripple is getting support from major industry players amid court cases because many realize that the Commission was not particularly attacking the company. Instead, Garlinghouse believes that the SEC is indirectly attacking the entire crypto space.
next
Ibukun is a crypto/finance writer interested in conveying relevant information, using non-complex words to reach all kinds of audiences. In addition to writing, he enjoys watching movies, cooking, and exploring restaurants in the city of Lagos, where he resides.
