Ripple is making good progress in its legal feud with the SEC
In an interview with CNBC host Dan Murphy, chief executive Brad Garlinghouse said Ripple is making good progress in its legal battle with the U.S. Securities and Exchange Commission (SEC).
Ripple seeing good progress in SEC case over XRP, outcome expected next year
We all know the story between Ripple and the SEC. Accordingly, Ripple is a technology company that has created a lot of buzz in the market. It has partnered with numerous companies to create the most robust cross-border remittance corridor.
Its technology is designed to let banks and other financial services firms send money across borders faster and at a lower cost. The company also markets another product that utilizes XRP for cross-border payments called On-Demand Liquidity (ODL).
Elsewhere, during the crypto crisis of late 2017 and 2018, XRP followed BTC and ETH, skyrocketing to an all-time high of $3.4. Since then, though, it has dropped significantly but is riding on the latest crypto wave with a gain of over 370% to date. And one of the factors affecting XRP price is the SEC. Garlinghouse said he hopes the XRP-focused case will likely conclude next year.
“We’re seeing pretty good progress despite a slow-moving judicial process,” he told Murphy. “We’re seeing good questions asked by the judge. And I think the judge realizes this is not just about Ripple, and this will have broader implications.”
The SEC has consistently expressed concern about Ripple’s relationship with XRP. The commission accused the company and its executives of selling $1.3 billion worth of tokens in an unregistered securities offering. But Ripple argues that XRP should not be considered a security, a classification that would subject it to much stricter regulatory scrutiny.
This comes as regulators worldwide take a closer look at cryptocurrencies, a market that remains unregulated mainly but has exploded over the last year. According to Garlinghouse, the United Arab Emirates, Japan, Singapore, and Switzerland are examples of countries showing leadership in crypto regulation, while China and India India have suppressed the industry.
“In general, the direction of travel is very positive,” Garlinghouse said.
Elsewhere, Brady Dougan, a former Credit Suisse executive, said regulation is a key area in crypto that is likely to evolve.
“It’s a market that’s early in its development,” Dougan said. “I think it’s a healthy market, and it will continue to develop positively.”
If everything goes as smoothly as CEO Garlinghouse said, Ripple is likely on the right track in its battle with the SEC.
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