Could the lawsuit between the Securities and Exchange Commission (SEC) and Ripple be concluded soon? Yes, according to a statement by Brad Garlinghouse, the company’s CEO. Here’s an update on the latest developments in the case
Will Ripple’s trial end in 2022?
Brad Garlinghouse shared his estimate in an interview with CNBC. It is now almost a year since the trial between Ripple and the SEC began. The SEC is accusing the San Francisco-based company of having engaged in an illegal sale of financial securities.
The news had raised fears of a collapse of Ripple, which had seen its XRP removed from several major exchange platforms. But in recent months, the company has shown that it has more than one trick up its sleeve, to the point of getting the US financial regulator in trouble.
It is undoubtedly this confidence that the CEO of Ripple wanted to convey, who says that the trial will end during 2022:
We are making good progress, despite the slow pace of the legal process “
Brad Garlinghouse further reminds us that the lawsuit may be limited to Ripple, but it could set a precedent for the crypto industry as a whole:
The judge is asking good questions. And I think the judge realizes that it’s not just Ripple, it’s going to have broader implications. “
Ripple VS SEC – where does the case stand?
Recently, Judge Netburn, who is in charge of the case, admitted that the SEC’s interpretation was broad. It would imply that everyone who sells XRP would be doing so contrary to the law. However, the judge did not allow the holders to represent their interests during the trial. They are currently speaking through John Deaton, a lawyer and founder of the Crypto-law website.
For its part, the SEC appears to be in some difficulty. It was forced to admit that a former senior executive had claimed in 2018 that Ether (ETH) was not a financial security. But it reminds us that unlike Ripple, Ethereum is not a company, and does not have a CEO…
A conclusion still unclear
It’s not yet clear how the trial will end, but a clue may be found in the CEO of analytics site Messari, Ryan Selkis. Strongly critical of the SEC and its seemingly unfounded accusations, he nonetheless felt that Ripple was guilty of fraud
1/ I am attacking, and will continue to attack, SEC leadership bc @GaryGensler is divorced from his agency’s mission and is not honestly pursuing solutions.
SEC is fighting technical securities violations, while ignoring the Safe Harbor, which would prevent fraud.
e.g. Ripple
– Ryan Selkis (@twobitidiot) November 14, 2021
Ripple is not guilty of violating financial securities laws. In my opinion, they are guilty of fraud. They deceived XRP holders regarding an insider token sale, selectively disclosed data, and promoted partnerships to add value to the underlying currency. “
Meanwhile, the XRP price continues to look bleak, in a rather gloomy environment for cryptocurrencies as a whole. The altcoin is losing -5% on the week, and is currently trading at a price 69% lower than its record high reached in January 2018. However, it remains the 7th most capitalised cryptocurrency at the moment, with a market cap of $49 billion.
