Ripple Labs CEO Brad Garlinghouse recently stated that he expects a court decision on the lawsuit filed by the US Securities and Exchange Commission (SEC) against Ripple “within weeks, not months.” Garlinghouse commented in one interview during the “Redefining Tomorrow 2023” summit.
The SEC sued Ripple in 2020, alleging that the company failed to register the cryptocurrency XRP as a security and raised more than $1.3 billion through ongoing unregistered digital asset sales. The company has denied the SEC’s allegations and argued that XRP is a currency, not a security.
Ripple’s CEO expects a favorable court decision
Garlinghouse also revealed that 95% of Ripple’s customers are non-American and the company has seen tremendous growth. He added that given the regulatory context, if he could go back in time and start the company again, he wouldn’t do it in the US.
Ripple has been fighting hard against the SEC’s allegations, with Garlinghouse and co-founder Chris Larsen submit a motion file the case in March. Ripple has argued that the SEC’s case is based on a flawed legal theory and that XRP is not a security but a currency that operates independently of Ripple.
The case has been controversial, with Ripple accusing the SEC of causing “billion dollar losses” to XRP holders by filing their lawsuit. The SEC, on the other hand, has accused Ripple of engaging in ongoing illegal securities offerings.
The outcome of the case is eagerly awaited by the cryptocurrency industry, as it could significantly affect how digital assets are regulated in the US. If the court rules in favor of the SEC, it could set a precedent for other cryptocurrencies to be treated as securities, subjecting them to greater regulatory oversight.
On the other hand, if the court rules in Ripple’s favor, it could provide greater clarity for the cryptocurrency industry and pave the way for greater adoption of digital assets.
On March 2, CEO of Ripple Labs expressed his views on the US Securities and Exchange Commission’s lawsuit against the company in an interview with Bloomberg Television. Garlinghouse called the case “pivotal for the entire industry” and expressed hope for a decision on the case this year.
Garlinghouse reiterated this position in the Bloomberg interview, stating that XRP is not a security and that clearer rules are needed for crypto in the US. He also argued that the SEC’s recent increase in crypto enforcement actions keeps the US behind other countries in establishing productive crypto regulation.
Garlinghouse’s statement that he expects a ruling in the coming weeks is being interpreted by some in the cryptocurrency community as a sign that he expects a favorable decision from the court. If this is the case, it would suggest that Ripple’s arguments are being taken seriously by the court and that the SEC’s case is flawed.
XRP downtrend on 1-day chart. Source: XRPUSDT is TradingView.com
Featured image by Unsplash, graphic by TradingView.com
