Garlinghouse Is Confident That XRP Lawsuit Will End In Less Than 6 Months• January 22, 2023 5:36 pm • Comments
Brad Garlinghouse, the CEO of Ripple, just provided his latest comments and thoughts regarding the status of the lawsuit between Ripple and the SEC.
He states that he believes that there should be a resolution reached within 6 months or less which is quite reassuring for XRP investors within the US.
After all, the case has already been dragged out for around 2 years due to the SEC constantly implementing delay tactics during the case.
As a result, it makes sense that the lawsuit can be resolved in 2023 and Garlinghouse seems pretty relaxed about the situation even as he was speaking at Davos 2023.
So far, lawyers and experts have for the most part agreed that the SEC has not been able to strengthen its case and that Ripple has been able to maintain a strong defense.
My take on Davos 2023 – I honestly think it’s healthy seeing the change in how crypto showed up this year. Folks are focusing on utility and how these technologies solve real problems — the only way the industry will move forward. Great to catch up @ArjunKharpal, @CNBCJou! https://t.co/sns4PX5q3O
— Brad Garlinghouse (@bgarlinghouse) January 18, 2023
The lawsuit initiated by the SEC 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 submitted their final round of briefs seeking a summary judgment to the case.
They accused each other of manipulating the law.
The judge could make a ruling which may involve an out-of-court settlement and avoid a trial. Garlinghouse said he expects such a ruling to arrive “sometime in the coming single-digit months,” potentially as soon as June.
“We have always said that we would love to settle, but it requires one very important thing, and that is that, on a go-forward basis, it’s clear that XRP is not a security.”
SEC Chair Gary Gensler has maintained that XRP, and the majority of all crypto assets, are securities. Therefore, in his opinion, they need to register and abide by the same rules as stock brokerages.
Garlinghouse also made the extremely important point that this case is not just about Ripple and the SEC.
Instead, it is about the entire crypto industry versus the SEC because it will sent a landmark precedent on how all future crypto cases are handled and whether or not they are considered securities.
The CEO repeatedly emphasized this at the WEF at Davos which may hopefully gather more support from both US investors as well as investors abroad.
Garlinghouse also stated that Ripple would like to settle as soon as possible, but the SEC’s claim that all crypto are considered securities makes a settlement very unlikely.
If the SEC continues to support this claim, there is essentially very little room for negotiation and it becomes a “winner take all” situation.
This is why there is a lot at stake and why it is important for everyone to support Ripple in any way possible.
Ripple CEO Confident Over SEC Case Resolution in Less Than 6 Months
Brad Garlinghouse is hopeful that the lawsuit will be completed this year.https://t.co/U6YzIvkCBv
— Crypto RSS (@TheCryptoRss) January 19, 2023
He said the U.S. is “notably absent” from the list of regulators developing crypto-friendly rules. The United Arab Emirates, Japan, Singapore, Switzerland and U.K. are some of the forerunners in this respect, in his view.
As part of the legal proceedings, Ripple fought to obtain documents related to a June 2018 speech from former SEC official Bill Hinman, which it says have aided the case. In the speech, Hinman says that sales of rival ether “are not securities transactions.”
XRP was once the third-largest cryptocurrency, commanding a $120 billion market value in early 2018. It has dropped sharply since, amid U.S. regulatory scrutiny and a wider downturn in bitcoin and other digital currencies. XRP now has a market capitalization of roughly $20 billion, according to CoinMarketCap data.
2023 SEC 🆚 Ripple 🧵
Will the case settle?
After 18K votes, the👇 poll shows 59% of people believe a settlement will happen.
Tbh, 59% is higher than I would’ve guessed.
A year ago, I believed a settlement was likely b/c the SEC wouldn’t want the Hinman emails made public. https://t.co/9T4YneixBX
— John E Deaton (@JohnEDeaton1) January 1, 2023
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