YEREVAN (CoinChapter.com) – Ripple chief Brad Garlinghouse expressed his optimistic outlook on the looming closure of the XRP lawsuit. He time-stamped the XRP case to resolve in the first half of 2023 while pointing out that the Securities and Exchange Commission(SEC) conduct was “embarrassing” for any US citizen.
NOTE: The SEC filed the Ripple lawsuit in Dec 2020, charging the company and its executives with violation of US investment laws. The agency claimed that the XRP token was an unregistered security. Thus ALL XRP sales since the ICO are unlawful. Ripple’s lawyers fired back, claiming that XRP does not fall under the securities definition within the Howey test.
Garlinghouse says the XRP case is nearly over.
In a recent interview with CNBC during the World Economic Forum in Switzerland, Garlinghouse reiterated his expectations of a drawing resolution to the Ripple lawsuit. In detail, he had the same predictions in 2022. However, the back-and-forth between the opposing sides dragged on to 2023.
In Sep 2022, the Ripple CEO called the SEC “coo-coo,” saying that the agency no longer has a leg to stand on. He also asserted that SEC has exhausted all its prosecution angles and no longer “makes sense.” Garlinghouse continued the narrative in the Jan 18 interview.
Judges take however long the judges will take. We’re optimistic that this will certainly be resolved in 2023 and maybe [in] the first half. So we’ll see how it plays out from here. But I feel very good about where we are relative to the law and the facts.
commented the CEO.
Also read: Ripple vs SEC Update: Ruling on summary judgment will come first, says expert.
Many XRP fans expected a settlement to end the dispute. However, the rumors were not founded. Garlinghouse asserted that Ripple would be open to a settlement, but he did not expect SEC to satisfy the one condition – declare XRP clear of securities violation.
“XRP is clearly not a security,” – the CEO asserts
As mentioned, XRP’s status has been the cornerstone of the lawsuit and the primary reason the latter was filed. However, the cryptocurrency sector has yet to be defined in fiat terms and lacks regulation. Notably, the SEC bears the responsibility for providing the said definition. Thus, the XRP case will have broad implications for the cryptocurrency sector, serving as a precedent for future disputes.
During the interview, Garlinghouse called out the agency for “embarrassing” conduct and fired accusations to Chair Gary Gesler personally.
The SEC’s behavior in some of it has been embarrassing as a U.S. citizen. Just some of the things that have been happening, like you’ve got to be kidding.
said the CEO.
Notably, the CEO accused the SEC of violating the trust between the public and private sectors. He asserted that the SEC could have voiced their stance before filing the lawsuit, but it chose not to.
Not once did they say to me we think XRP may be a security. So to later go back and say hey the whole time we thought XRP was a security we just didn’t tell you… that doesn’t feel like a genuine partnership between the public sector and the private sector.
No settlement in sight for Ripple lawsuit
While the securities-not-securities dispute continues, Garlinghouse does not see a settlement ahead, despite being open to the option. He asserted that Ripple was “always” open to the option, but there’s a key definition missing from the agency.
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. Gary Gensler has very outwardly said he views almost all crypto as a security. And so that leaves very little space […] for settlement.
If there’s no “space” left for the settlement, then the CEO is most likely expecting a ruling in the crypto startup’s favor. However, there’s no ruling to speak of yet, despite both sides routing for Summary Judgement.
Also read: Ripple XRP Update: SEC Files Motion to Seal Part of Summary Judgment Documents.
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