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The Ripple boss hinted some optimism, stating that there may finally be a resolution to its legal battle with the SEC.
While Ripple remains entangled in its legal battle, the company’s CEO Brad Garlinghouse recently mentioned some emails from the Security and Exchange Commission (SEC) while speaking at the World Economic Forum (WEF). The event in Davos recorded many industry leaders and government officials in attendance, discussing different topics across multiple sectors.
Ripple Boss on SEC Case at 2023 WEF
The emails came specifically from SEC Director Bill Hinman. Speaking at the WEF, the Ripple CEO revealed that the SEC director’s emails had been ordered to be submitted to the judge. He believes that the messages may contain some damning information. Garlinghouse noted that the exposition of the documents to the public would likely trigger questions on why the Commission brought the lawsuit against Ripple. He explained:
“When those come to light, I think that we will see more kind of like ‘How is it possible the SEC decided to bring a case against Ripple given what they were saying within their walls.”
In addition, the Ripple boss hinted some optimism at the WEF, stating that there may finally be a resolution to its legal battle with the SEC. According to Garlinghouse, the prolonged lawsuit may eventually end within the first half of this year. The case began in 2020 when the SEC alleged that Ripple and its executives illegally sold unregistered XRP to clients. The dispute raised the question of whether XRP should be considered a security. After much back and forth with the case, the SEC and Ripple submitted the final rounds of briefs in December. The parties asked for a summary judgment of the case.
Is the SEC’s Case against Ripple about to End?
In an interview with CNBC’s “Squawk Box Europe” at the WEF, the Ripple CEO noted his expectation from the SEC lawsuit. He emphasized his optimism in a resolution within the first six months of 2023. Garlinghouse said he feels “very good” about the lawsuit’s current state, adding that “judges take however long judges will take. He mentioned that Ripple is open to a settlement if it comes to that.
“We have always said that we would love to settle, but it requires one very important thing, and that is that, on a go-forward basis, it’s clear that XRP is not a security. The SEC and Gary Gensler has very outwardly said he views almost all crypto as a security. And so that leaves very little space in the Venn diagram for settlement.”
XRP may have to deal with stricter restrictions if it is pronounced security. This means the crypto asset will be more transparent, provide higher investor protections, and more.