Ripple CEO on SEC Inappropriate Behavior and XRP Lawsuit
2023.01.19 15:10
Ripple CEO on SEC Inappropriate Behavior and XRP Lawsuit
By Tiffany Smith
Budrigannews.com – Brad Garlinghouse, the chief executive officer of Ripple, is optimistic that the long-running dispute the company has with the U.S. Securities Exchange Commission (SEC) will be resolved in “single-digit months” and that a favorable outcome will be achieved.
Garlinghouse stated to CNBC during the World Economic Forum in Davos, Switzerland, that the verdict could be rendered as soon as June given that both parties have “fully filled and fully briefed” their arguments in front of the U.S. District Court:
We anticipate a decision from a judge in 2023, most likely. When a judge makes decisions, you really have no control over it. However, I am optimistic that there will be closure at some point in the upcoming few months.”
While investors and Garlinghouse are of the opinion that the law, the facts, and the court will ultimately favor Ripple, the CEO of Ripple took advantage of the situation to mock the “embarrassing” behavior of the SEC throughout the lawsuit, noting that:
As a U.S. citizen, some of the SEC’s actions have been embarrassing. You have to be kidding, just some of the things that have been going on.”
In addition, Garlinghouse argued that the company was betrayed by the regulator because it filed the lawsuit despite their attempts to meet with them three times to clarify the regulatory framework:
They never once mentioned to me that they thought XRP might be a security. Therefore, to later reply, “Hello, we thought XRP was a security, but we just didn’t tell you,” does not appear to be a genuine partnership between the public and private sectors.
Garlinghouse reiterated that Ripple would only settle if it was made abundantly clear that XRP (XRP) is not a security, despite the fact that the outcome of the case also has significant repercussions for the cryptocurrency industry.
Garlinghouse, on the other hand, stated that “the SEC and Gary Gensler has very outwardly said he views almost all crypto as a security,” which “leaves very little space in the Venn diagram for settlement.”
Garlinghouse went on to say that the SEC ought to pay attention to some of the countries that are more open to crypto and are putting together more “positive” regulation that doesn’t stop innovation.
The United Arab Emirates, Japan, Singapore, Switzerland, and the United Kingdom were among the nations he praised. In December 2020, the Securities and Exchange Commission (SEC) filed the lawsuit, claiming that Ripple unlawfully sold its XRP token as an unregistered security.
Ripple has long disputed the claim, claiming that it does not meet the Howey test for an investment contract.
The New York district court will decide whether to try the case before a jury or issue a separate ruling in the event that the parties cannot reach an agreement.
