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- In December 2020, SEC filed a lawsuit against Ripple.
- The SEC claimed that the sales of XRP included an investment contract and the token offering was also unregistered.
- Ripple opposed the SEC’s charges and the case was initiated.
The words of Ripple CEO
The Chief Executive Officer of Ripple, Brad Garlinghouse, said that there is a high probability that the legal dispute between Ripple and the Securities and Exchange Commission of the United States will come to an end in the first six months of this year.
On January 18, Garlinghouse went to WEF’s Davos conference where he had a word with a media channel in which he stated:
“We are extremely confident that this will surely be concluded this year, and probably in the first six months. Now, we will witness how it plays out from here. But I feel delighted that where we are comparable to the law as well as the facts.”
Garlinghouse took his turn and said that “possibly Ripple will not conclude with the SEC. Also, the firm will only sort out if the commission decided that XRP is not a security. He highlighted that the commission along with its chair, Gary Gensler, has made it very clear that nearly all cryptocurrencies are acknowledged as a security, and left just a small gap for the settlement.
Apart from this, Ripple and the SEC both will wait for the determination made by the judge. Garlinghouse also explained that the case has now been completely informed of in the courts. Both parties filed their request for summary judgment in 2022, although the case was later stretched.
Not only this but Garlinghouse has also referred to the behavior of the Securities and Exchange Commission as very embarrassing and forced the facts of the proceedings and the law backs Ripple.
Ripple vs. SEC
In December 2020, SEC filed a lawsuit against Ripple claiming that the sales of XRP included an investment contract and the token offering was also unregistered. Just after the filing of the lawsuit, Ripple opposed the SEC’s charges and the case was initiated.
A number of companies came to back Ripple in the recent past. It is noteworthy that Coinbase advised that the SEC’s case resulted in $15 billion in losses for retail crypto traders.
This conflict between Ripple and the SEC is anticipated to set an example for the crypto industry and influence the SEC’s wish to go for the same case. Here, Ripple looks to be stronger as compared to some companies in the past, but its success is not yet sure.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
