Brad Garlinghouse, CEO of Ripple, predicts that “we’ll have an answer in the first half of next year” regarding the SEC lawsuit involving xrp. The executive emphasized that while xrp is not a security, the case “is about the entire industry” and “Everyone acknowledges how important this is.”
At a DC Fintech Week event, Ripple CEO Brad Garlinghouse discussed the timeline for the SEC’s lawsuit regarding the sale of XRP, according to a Tuesday report by Bloomberg.
While acknowledging that it is difficult to predict the pace of court proceedings, Garlinghouse said:
I think we’ll have an answer in the first half of next year. Whether that’s the first quarter or second quarter, we shall see.
Garlinghouse further said Tuesday that Ripple would consider a settlement with the SEC if the regulator states that XRP is not a security. The executive stressed that the XRP case “is about the whole industry,” adding:
Everyone acknowledges how important this is.
Garlinghouse noted that Ripple’s business in the U.S. is limited, noting that “For all intents and purposes, XRP does not have liquidity in the United States.”
In December 2020, the SEC filed a lawsuit against Ripple, Garlinghouse, and co-founder Chris Larsen, alleging that they had raised more than $1.3 billion through an ongoing, unregistered offering of XRP as a digital asset security. Later, Ripple submitted a motion to dismiss the case on the grounds that the XRP token is not a security. The SEC has additionally asked the court for a decision in its favor without a trial in the meantime.
Garlinghouse stated: “I believe the SEC has massively overstepped… in July. They may have noticed this gray area and said, “Hey, we’re going in. The CEO of Ripple emphasized: “It’s frustrating that it’s taking so long. I believe that many businesses are aware of how crucial this case is to the sector as a whole.