Ripple Labs Chief Executive Officer, Brad Garlinghouse, has recently indicatedย that he expects a court ruling on the lawsuit brought by the Unitedย States Securities and Exchange Commission (SEC) against Ripple โin weeks, not months.โ Garlinghouse commented in an interview during the โRedefine Tomorrow 2023โ summit.
The SEC sued Ripple in 2020, alleging that the company failed to register the XRPย Rippleย (XRP) digitalย currency as a security and raised over $1.3 Billion through unregistered, ongoing digital investment sales. The company has rejected the SECโs states and has claimedย that XRPย Rippleย (XRP) is a currency, not a security.
Ripple CEO Expects Favorable Court Decisionย
Garlinghouse likewise revealed that 95 percent of Rippleโs customers are non- Unitedย States, and the company has seen much growth. He alsoย mentionedย that given the regulatory backdrop if he could go back in time and establish the company onceย more, he would not do it in the US.
Ripple has been fighting hard against the SECโs states, with Garlinghouse and co- founder Chris Larsen filing a motion to dismiss the case in March. Ripple has claimedย that the SECโs case is accordingย to a flawed legal theory and that XRPย Rippleย (XRP) is not a security but a currency that operates independently of Ripple.
The case has been contentious, with Ripple accusing the SEC of causing โmulti- Billion dollar lossesโ to XRPย Rippleย (XRP) holders by filing its lawsuit. The SEC, on the other hand, has accused Ripple of engaging in ongoing illegal securities offerings.
The industry of digitalย currency eagerly awaits the caseโs outcome, as itย canย potentially significantly affect how digital assets are regulated in the Unitedย States. If the court regulations in favor of the SEC, itย canย potentially set a precedent for other digitalย currencies to be treated as securities, subjecting them to greater regulatory oversight.
On the other hand, if the court regulations in favor of Ripple, itย canย potentially provide greater clarity for the industry of digitalย currency and pave the way for greater adoption of digital assets.
On March Second, Ripple Labs CEO expressed his views on the Unitedย States Securities and Exchange Commissionโs lawsuit against the company in an interview with Bloomberg Television. Garlinghouse wasย known the case โpivotal for the whole industryโ and expressed his hope for a decision on the case this year.
Garlinghouse reiterated this position in the Bloomberg interview, stating that XRPย Rippleย (XRP) is not a security and that clearer regulations for cryptocurrency in the Unitedย States must be clarified. He likewise claimedย that the SECโs recent boostย in cryptocurrency enforcement actions keeps the Unitedย States behind other countries in establishing productive cryptocurrency regulation.
Garlinghouseโs statement that he expects a ruling in the nextย fewย weeks is being interpreted by some in the digitalย currency community as a sign that he expects a favorable decision by the court. If this is the case, it would suggest that Rippleโs arguments are being taken seriously by the court and that the SECโs case is flawed.
Featured image from Unsplash, chart from TradingView.comย
