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The Ripple chief had already earlier specified that the lawsuit with the SEC would reach a resolution in the first half of 2023.
The lingering legal battle between the US Securities and Exchange Commission (SEC) and Ripple is expected to finally come to an end in 2023. The case, which began in December 2020, involved the payment protocol and two of its executives – Christian Larsen and Bradley Garlinghouse. The Commission alleged that the company and the executive sold unregistered XRP tokens, raising $1.3 billion. According to the filing, Ripple began to sell unregistered security offerings in 2014 to investors in the US and other parts of the world. The SEC also alleged that Ripple distributed XRP for non-cash considerations like market-making services and labor. More allegations were brought upon Ripple, Larsen, and Garlinghouse for failing to protect investors, limiting their access to the information they are entitled to.
While the regulator claims that Ripple failed to register XRP as a security before offering it to investors, Ripple said the token should not be regarded as an investment contract. Instead, the team noted that XRP is used in its business to conduct cross-border transactions between banks and other financial institutions.
After several back and forths as the legal war between Ripple and the SEC persists, the matter may finally be resolved this year, 2023. The company’s CEO revealed his expectations that the over-two-year struggle will be finalized this year. Speaking to Bloomberg in an interview on March 2, Galringouse stated:
“It’s been almost two and a half years since that litigation began. We’ve tried to move forward as quickly as we possibly could. The litigation was fully briefed in front of federal court, and we do expect a decision certainly in 2023.”
The Ripple chief had earlier specified that the lawsuit with the SEC would reach a resolution in the first half of 2023. In January, he told CNBC’s “Squawk Box Europe” at the World Economic Forum that he was satisfied with the current situation “relative to the law and the facts.” Although Garlinghouse said he is open to settling, he does not expect the company to settle the case.
“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 XR 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.”
In his recent statement on expecting a settlement in 2023, the Ripple CEO talked about the adverse effect of the lawsuit on the crypto industry. He believes that Ripple receives support from top industry players amid the court cases because many realize that the Commission was not particularly attacking the company. Instead, Garlinghouse thinks the SEC is indirectly attacking the entire crypto space.