Ripple CEO Brad Garlinghouse expects the company’s long-running dispute with the Securities and Exchange Commission (SEC) to be completed within “single digit months” and remains confident of a favorable outcome.
Speaking to CNBC on Jan. 18 at the World Economic Forum in Davos, Switzerland, Garlinghouse said a verdict could come as early as this June, once both sides have “fully filled out and fully briefed” their arguments before the U.S. District Court:
“We expect a decision from the judge for sure in 2023. You don’t really have control over when the judge makes the decision. But I’m optimistic that sometime in the coming single-digit months we’ll have closure there.”
While Garlinghouse and investors believe fact, law and court will ultimately side with Ripple, Ripple’s CEO also took the opportunity to mock the SEC’s “embarrassing” behavior during the litigation, noting:
“The SEC’s behavior in some of these was embarrassing as a US citizen. Just some of the things that happened, like you’re kidding.”
Garlinghouse also claimed that the company had been betrayed by the regulator as it filed the lawsuit despite their efforts to meet with them on three separate occasions to ensure regulatory clarity:
“Not once have they told me that we think XRP can be a security. To come back later and say hey, all along we thought XRP was a security we didn’t tell you about… that doesn’t feel like a real public-private partnership to me.”
While Garlinghouse noted that the outcome of the case also has huge implications for the cryptocurrency industry, he reiterated that Ripple would only settle if it was clear that XRP not a security.
However, “the SEC and Gary Gensler have very outwardly said that they consider almost all cryptocurrencies to be a security,” Garlinghouse said, “so that leaves very little room in the Venn diagram for settlement,” he added.
Garlinghouse added that the US SEC should take note of some of them countries that are more friendly to cryptocurrencies who put together more “positive” regulation that doesn’t stifle innovation.
Countries he spoke highly of included the United Arab Emirates, Japan, Singapore, Switzerland and the United Kingdom
The The lawsuit was initiated by the SEC in December 2020, claims that Ripple illegally sold its XRP token as an unregistered security.
Ripple has long disputed this claim, saying it represents none investment contract according to the Howey test.
If the parties do not agree, the district court located in New York either issues a separate decision or submits the matter to a jury trial.