The US Securities and Exchange Commission filed a long-term action against Ripple in 2020. That contends the firm and its officials issued XRP cryptocurrency to investors without first registering it as a security. The series of hearings are already underway, and Ripple CEO Brad Garlinghuse has claimed that the disagreement will be resolved within the next few months, almost certainly by June, and that he is certain that the outcome will be favorable.
Brad had spoken on CNBC’s Squawk Box Europe on Wednesday at the World Economic Forum in Davos. He also said that he expects a resolution to the ongoing dispute to occur in the first half of 2023. And both parties have completely briefed and filed their arguments in front of the United States District Court.
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
Ripple CEO Comments on SEC Actions
The CEO of Ripple and the investors anticipate that the facts, law, and the court will ultimately favor Ripple. Furthermore, he claimed that the United States is notably absent from the list of authorities and regulators creating crypto-friendly policies.
Garlinghouse has also said that
“As a US citizen, some of the SEC’s behavior has been embarrassing. just some of the things that have been happening as if you’re joking with me”
Additionally, he mentioned throughout the interview that they have always stated that they would love to settle, but one very crucial element is required, and Gray Gensler has stated unambiguously that he views practically all crypto as a security. As a result, there is relatively little scope for settlement in the Venn diagram.
And Ripple seems to have a detailed dispute action and the argument that it does not meet the Howey test for an investment contract. If the two parties cannot reach an agreement, the New York-based district court will either issue a hold judgment or put the case before a jury in a trial.