Ripple CEO Brad Garlinghouse expects the company’s long-running dispute with the US Securities and Exchange Commission (SEC) to be concluded within “single-digit months” and remains confident of a positive outcome.
Speaking on CNBC Jan. 18 at the World Economic Forum in Davos, Switzerland, Garlinghouse said the ruling could come as early as June, now that both parties have completed all requirements and information regarding their arguments before the US District Court.
“We hope to have a decision for sure in 2023. You don’t really have any control over when a judge makes their decisions. But I’m optimistic that at some point over the next few single-digit months, we’re going to see a shutdown.”
While Garlinghouse and investors believe that facts, law, and the court will ultimately side with Ripple, the CEO also took the opportunity to poke fun at the SEC’s “embarrassing” behavior throughout the process, stating:
“The SEC’s behavior has at times been embarrassing for an American citizen. Just some things happen, like you’re just kidding.”
Garlinghouse also argued that the company had been betrayed by the regulator, which filed the lawsuit despite the company’s efforts to engage SEC officials on three separate occasions to obtain a regulatory clarification:
“Not once did they tell me that they thought XRP could be a security. So let’s come back later and say, hey, the whole time we thought XRP was a security and we didn’t tell you… This doesn’t sound like a true public-private partnership.”
While noting that the outcome of the case also has significant implications for the cryptocurrency industry as a whole, Garlinghouse reiterated that Ripple will only settle if it becomes clear that XRP (XRP) is not a security.
However, Garlinghouse said, “The SEC and Gary Gensler have stated frankly that they view all cryptocurrencies as insurance, so this leaves little room for filtering on a Finn chart.”
Garlinghouse added that the SEC should consider some of the more crypto-friendly countries adopting “positive” regulations that don’t stifle innovation.
Among the countries he praised were the United Arab Emirates, Japan, Singapore, Switzerland and the United Kingdom.
The lawsuit was filed by the Securities and Exchange Commission in December 2020, alleging that Ripple illegally sold the XRP token as an unregistered security.
Ripple has long disputed this claim, arguing that a public offering of XRP does not constitute an investment contract under the Howey test.
If the parties cannot reach an agreement, the New York District Court will make an independent decision or refer the matter to a jury for a later trial.