Ripple Labs Chief Executive Officer, Brad Garlinghouse, has recently stated that he expects a court ruling on the lawsuit brought by the US Securities and Exchange Commission (SEC) against Ripple “in weeks, not months.” Garlinghouse commented in an interview during the “Redefine Tomorrow 2023” summit.
The SEC sued Ripple in 2020, alleging that the company failed to register the XRP cryptocurrency as a security and raised over $1.3 billion through unregistered, ongoing digital asset sales. The company has denied the SEC’s allegations and has argued that XRP is a currency, not a security.
Ripple CEO Expects Favorable Court Decision
Garlinghouse also revealed that 95% of Ripple’s customers are non-US, and the company has seen much growth. He added that given the regulatory backdrop if he could go back in time and set up the company again, he would not do it in the US.
Ripple has been fighting hard against the SEC’s allegations, with Garlinghouse and co-founder Chris Larsen filing a motion to dismiss 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 contentious, with Ripple accusing the SEC of causing “multi-billion dollar losses” to XRP holders by filing its lawsuit. The SEC, on the other hand, has accused Ripple of engaging in ongoing illegal securities offerings.
The cryptocurrency industry eagerly awaits the case’s outcome, 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 favor of Ripple, it could provide greater clarity for the cryptocurrency industry and pave the way for greater adoption of digital assets.
On March 2nd, Ripple Labs CEO 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 whole industry” and expressed his 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 for crypto in the US need to be clarified. 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 by 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.
Featured image from Unsplash, chart from TradingView.com
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