Brad Garlinghouse expects an “answer” in the US Securities and Exchange Commission’s suit against his crypto payments company, Ripple Labs Inc., by the first half of next year.
(Bloomberg) — Brad Garlinghouse expects an “answer” in the US Securities and Exchange Commission’s suit against his crypto payments company, Ripple Labs Inc., by the first half of next year.
The SEC sued Ripple in 2020. The regulator alleged that Ripple and its top executives misled XRP investors because it failed to register the digital asset as a security and did not provide adequate disclosure.
Garlinghouse, Ripple’s chief executive officer, said on Tuesday that it is hard to predict the pace of court proceedings.
“I think we’ll have an answer in the first half of next year,” Garlinghouse said during an event for DC Fintech Week. “Whether that’s the first quarter or second quarter, we shall see.”
In September, Ripple filed a motion seeking to dismiss the suit, claiming its XRP token is not a security that is subject to SEC authority. The SEC has also asked for a ruling in its favor without a trial.
Ripple would consider a settlement with the SEC if the regulator states that XRP is not a security, Garlinghouse said Tuesday. The case “is about the whole industry” he said. “Everyone acknowledges how important this is.”
Already, Ripple’s business in the US is limited, according to Garlinghouse. “For all intents and purposes, XRP does not have liquidity in the United States,” he said.
XRP is the sixth-largest cryptocurrency, with a market value of about $25 billion. The token fell about 5% to 49 cents on Tuesday, and is down around 40% this year.
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