Ripple CEO Brad Garlinghouse expects the company’s longstanding dispute with the US Securities and Exchange Commission (SEC) to be resolved 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 that ruling could come as early as June after both parties “fully completed and fully presented” their arguments in the US District Court:
“We certainly expect a decision from a judge in 2023. You don’t really have control over when a judge makes his decisions. But I am optimistic that we will close there at some point in the coming single digit months.”
While Garlinghouse and the investors believe that the facts, the law and the court will ultimately side with Ripple, Ripple’s CEO also took the opportunity to address the SEC’s “embarrassing” behavior displayed throughout the lawsuit , to ridicule, and stated:
“The behavior of the SEC in some cases was embarrassing for a US citizen. Just some of the things that happened as if you must be kidding.
Garlinghouse also argued that the firm was betrayed by regulators when it filed the lawsuit, despite its efforts to meet with them on three separate occasions to get clarification on the regulations:
“Not once have they told me that we think XRP could be a security. So to go back later and say we thought XRP was a security all along, we just didn’t tell you… that doesn’t feel like a real partnership between the public and private sectors.”
While noting that the outcome of the case also has huge implications for the cryptocurrency industry, Garlinghouse reiterated that Ripple would only reach an agreement if it were made clear that XRP (XRP) is not a security.
“However, the SEC and Gary Gensler have very outwardly said that he considers almost all cryptos collateral,” Garlinghouse said, “leaving very little room in the Venn diagram for reckoning.”
Garlinghouse speaks to CNBC at the World Economic Forum in Davos, Switzerland. Source: CNBC.
Garlinghouse added that the SEC should take note of some of the more crypto-friendly countries that are putting together more “positive” regulation that doesn’t stifle innovation.
Countries he particularly praised included the United Arab Emirates, Japan, Singapore, Switzerland and the United Kingdom
Related: Ripple files final filing against SEC as landmark case nears conclusion
The lawsuit was initiated by the SEC in December 2020, alleging that Ripple illegally sold its XRP token as an unregistered security.
Ripple has long disputed the claim, arguing that it does not constitute an investment contract under the Howey test.
If the two sides disagree, the New York District Court will either make an independent decision or bring the matter to a jury trial.