- Ripple Lawsuit is making good progress in its legal feud with the SEC, CEO Brad Garlinghouse said. “We’ve been litigating up in the Northern District of California for a while now and we’re making really good progress.”
- Ripple CEO Garlinghouse expects the case to be settled next year
- The Security and Exchange Commission accuses Ripple and its executives of selling $1.3 billion worth of the cryptocurrency XRP in an unregistered securities offering.
Ripple is making great strides in their legal clash with the US Securities and Exchange Commission according to CEO Brad Garlinghouse. In a recent interview, he told CNBC that he believes they’re not going to end up with anything severe as a consequence from it.
Garlinghouse expects that the case, which focuses on XRP, the world’s seventh-largest cryptocurrency, will likely be resolved next year.
Ripple Lawsuit update
“We’re seeing pretty good progress despite a slow-moving judicial process,” he told CNBC’s Dan Murphy.
“Clearly we’re seeing good questions asked by the judge. And I think the judge realizes this is not just about Ripple, this will have broader implications.”
Garlinghouse said he’s hopeful the company will achieve closure next year.
Ripple – which is based in San Francisco- generated tons of attention during the crypto frenzy of late 2017 and 2018, when prices of bitcoin, ether and other cryptocurrencies skyrocketed to all-time highs.
Ripple’s proprietary token, vXRP, saw a significant jump in price this week. However, after failing to uphold its peak price of $3, it has dropped dramatically. Nevertheless, the coin has still gained more than 370% so far this year– riding the crypto wave.
Ripple’s tech is made to solve the pain of cross-border transfer, by making it easier and cheaper than ever. They also offer a another service that uses XRP for quick transfers called On-Demand Liquidity.
The SEC is concerned about the amount of XRP sold by Ripple & its executives. It alleges that they released $1.3 billion worth of unregistered securities via XRP sales, which makes over half the total supply belonging to the company. Ripple disagrees with the idea that XRP is a security. That would mean that it would be subject to a lot more regulation, which would only serve to hinder blockchain’s progress.
The government is getting increasingly involved in the crypto market. Whilst it’s still largely unregulated, this is changing with increased regulators & investors taking an interest.
Garlinghouse has said the United Arab Emirates, Japan, Singapore and Switzerland are examples of countries providing more “leadership” than China & India when it comes to regulating crypto. The latter two countries have become far more stricter on crypto than some others. “Overall, the direction of travel is very positive.” Garlinghouse mentioned.
Brady Dougan, ex-CEO of Credit Suisse, says cryptocurrency regulation will likely develop over time
“It’s an emerging market that will continue to grow,” Dougan, the CEO of Exos which is a firm in the financial world told CNBC. “It’s a healthy market and it’ll continue to develop positively.”
Ripple, a privately-held company, was last valued at $10 billion and has investors from many big companies.