The Ripple CEO says the company is making some strong progress on its legal case against the SEC and believes that the legal war between these two will be resolved next year. We are reading more about the developments in our latest Ripple news.
Brad Garlinghouse, the Ripple CEO says the company is making some strong progress in the legal battle with the US SEC and expects a conclusion in 2022. In an interview with CNBC, Brad Garlinghouse said that the legal lawsuit against the SEC is turning in favor of Ripple however the case will not be solved by the end of 2021 because of its specifics:
“We’re seeing pretty good progress despite a slow-moving judicial process.”
According to the CEO, the judge leading the case was addressing some good questions as he realized this is not just about Ripple because the outcome of the legal battle will have a worldwide impact. Given that the blockchain payment company issues XRP, the SEC accused the company of selling $1.3 billion worth of the token in the unregistered securities offering by the end of 2020. the company also said that XRP should not be considered security which puts it under even more enhanced regulatory scrutiny. Garlinghouse opined that the inability of the US authorities to bring decent rules in the crypto space is quite frustrating. He even blasted the securities regulator for being the only world agency that insists XRP should be a security.
After a few accusations from both sides since the start of the legal case, the battle evolved when Ripple defendants fired back and demanded to expose the XRP holdings of the SEC employees and to also garner anonymized documents reflecting the trading decisions with regards to ETH, BTC, and XRP. Ripple then demonstrated that the regulator hadn’t adopted or imposed rules restricting their employees from trading until 2018 which will be in line with the Commissions’ views on digital assets not being securities:
“At all times from 2013 until at least January 19, 2018, SEC employees were free to buy, sell and hold XRP without any restriction by the SEC.”
The Commission scored a few points a few days later by winning access to Ripple’s missing internal slack messages and then the company refused to hand over a part of its communications citing a processing error as the main reason. The SEC noted that these messages contain Discussions about Ripple’s desire to create speculative trading in XRP.
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