2 - 3 minute read
Ripple CEO Brad Garlinghouse has stated that a settlement with the U.S. Securities and Exchange Commission (SEC) in the ongoing lawsuit against the fintech firm and two of its executives is unlikely. The SEC has accused the company of raising over $1.3 billion through an unregistered, ongoing digital asset securities offering.
In a recent fireside chat at Davos with CNBC, Garlinghouse explained that a settlement could only be possible if the SEC clarified that XRP, Ripple’s cryptocurrency, is not a security. The CEO stated that the problem with the case is that the SEC, under its current Chairman Gary Gensler, has “articulated a view that all crypto is a security.”
The Ripple CEO went on to say that the “only way we would settle is if there’s clarity that XRP is not a security on a go-forward basis.” He added that the “Venn diagram for settlement is I think zero,” which means that the case will ultimately be decided by a judge.
Garlinghouse also stated that a ruling on the lawsuit could come as early as this year. The firm expects a decision “certainly in 2023,” and is optimistic that a decision will be made “sometime in the coming single-digit number of months.”
In addition to defending its own position in the lawsuit, Garlinghouse emphasized that Ripple is also fighting on behalf of the entire cryptocurrency industry. Several cryptocurrency firms, such as Coinbase and the Blockchain Association, have asked a federal court for permission to file a friend-of-the-court brief in the ongoing case.
Some experts have speculated that the lawsuit could be settled, leading to an XRP supply shock and a subsequent surge in price as demand remains constant while supply decreases. Others have noted that the cryptocurrency community sees XRP’s price spike when both parties request a summary judgment.
Ripple CEO Brad Garlinghouse has stated that a settlement with the SEC in the ongoing lawsuit is unlikely, and that a decision from a judge is expected in the coming months. He also emphasized that the firm is fighting not just for itself but for the entire cryptocurrency industry.
