Ripple CEO Brad Garlinghouse has stated that the company’s long-running regulation dispute with the US Securities and Exchange Commission (SEC) could be resolved within “single-digit months.” U. S attorney James K. Filan has also concurred that no further deadlines are visible at this time.
Now, the outcome of a two-plus year trial is up to Judge Analisa Torres.
An Optimistic Attitude
The Ripple bigwig remains confident of a positive outcome in court. Speaking to CNBC on January 18, Garlinghouse said the verdict could come as soon as June. This is based on both parties having “fully filled and fully briefed” their arguments before the US District Court.
Garlinghouse added that while the SEC’s behavior in the lawsuit has been “embarrassing as a U.S. citizen,” he is optimistic that the court will rule in Ripple’s favor.
The SEC filed a lawsuit against Ripple in December 2020. The complaint was that the company had illegally sold its XRP token as an unregistered security. Ripple has disputed the claim, arguing that XRP does not constitute an investment contract under the Howey test.
Garlinghouse has also criticized the SEC for not communicating its concerns about XRP’s status to the company before filing the lawsuit.
The outcome of the case has significant implications for the cryptocurrency industry. A ruling that XRP is a security would have widespread repercussions for other digital assets.
Garlinghouse has also criticized the SEC’s approach to cryptocurrency regulation. Specifically, he noted that other countries have adopted more “positive” regulations that do not stifle innovation.
Impacts on Regulation
This case is being closely watched by the entire crypto industry. It could have a huge impact on the future of digital assets and the way the SEC regulates them. The Ripple boss is optimistic that the court will rule in the firm’s favor, thus finally putting this dispute behind them.