Ripple Labs CEO Brad Garlinghouse is “confident” that the ongoing US Securities and Exchange Commission (SEC) lawsuit over XRP will be settled by the end of 2023. He believes a resolution could come as soon as the first quarter of 2021. “I feel very good about where we are in terms of the law and the facts,” the Ripple executive said.
Ripple CEO Optimistic About SEC Case
Ripple Labs CEO Brad Garlinghouse shared his thoughts on the US Securities and Exchange Commission (SEC) lawsuit regarding the sale of XRP during an interview with CNBC at the World Economic Forum in Davos, Switzerland on Wednesday.
Noting that judges “will take as long as they take,” Garlinghouse said:
We are optimistic that it will be settled by 2023 and potentially in the first half of 2023. So we’ll just have to wait and see. But I feel very satisfied with the state of the law and facts.
The SEC filed a suit against Garlinghouse and Ripple co-founder Chris Larsen in December 2020 for the sale of XRP. The regulator alleged that it was an unregistered offering of securities and labelled XRP as a security. Both the SEC and Ripple filed their final round of briefs in December last year seeking summary judgement.
The Ripple CEO indicated that he expects a ruling “sometime in the next few single-digit months,” and that he does not anticipate a Ripple settlement with the securities regulator.
“We have always said that we would love to come to an agreement, but it requires one very important thing and that is that going forward it is clear that XRP is not a security,” Garlinghouse emphasized, adding:
The SEC and Gary Gensler have stated loudly that most cryptocurrencies are considered securities. That leaves very little room in the Venn diagram for resolution.
SEC Chairman Gary Gensler has stated multiple times that while Bitcoin is considered a commodity, most other crypto tokens are considered securities.
Highlighting the importance of the final outcome of Ripple’s lawsuit, Garlinghouse said on Wednesday: “One thing I’ve heard here in Davos over and over again is how important this is, not only for Ripple… but also for the entire industry.” He continued: “I keep reminding people that outside of the US, cryptocurrencies continue to thrive, Ripple continues to thrive, and we need to make sure we keep engaging with regulators outside the US as well.”
In a separate fireside chat with CNBC, Garlinghouse opined:
From the beginning it was clear that the facts were on our side and that the law was on our side. As you have seen this play out and as you have seen the court documents, I think the judge is definitely listening to our arguments.
Who do you think will win the case? The SEC or Ripple? Please let us know your thoughts in the comments section.
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