Ripple case with SEC to ‘likely’ reach a conclusion in 2022, says CEO
“The judge realizes this is not just about Ripple, this will have broader implications,” Ripple CEO Garlinghouse said.
The long-standing feud between distributed ledger technology firm Ripple and the United States Securities and Exchange Commission (SEC) is nearing its end, according to Ripple’s CEO.
Brad Garlinghouse highlighted the progress made in the case “despite a slow-moving judicial process.” Speaking to CNBC, he predicted that the Ripple case would likely conclude in 2022.
“Clearly, we’re seeing good questions asked by the judge,” Garlinghouse said, adding his belief that “The judge realizes this is not just about Ripple, this will have broader implications.”
Last year, the SEC charged Ripple with allegations of selling unlicensed securities in the form of XRP tokens since 2013. Ripple objected to the claims, saying that XRP should not be considered a security.
The SEC claimed Ripple could have been aware that XRP could be a security from its legal advisors before moving forward with its token sale, and filed a motion to access the defendant’s legal advice. The court denied the motion, citing the attorney-client privilege.
Over the year, Ripple executives shared insights on the case and its impact on business. Garlinghouse stated that Ripple’s expansion to the Asia-Pacific region was undamaged by the SEC lawsuit. The company is also looking at a possible initial public offering as soon as the case is settled.
Support arrived from XRP token holders, who filed “friends of the court” briefs, which would allow them to join the case as defendants and support Ripple in its claims that the token does not violate securities laws. However, the judge ruled in October that individual XRP holders cannot act in Ripple’s ongoing lawsuit as defendants.