The SEC has filed a complaint against Ripple and two of its officials, claiming that the defendants “raised over $1.3 billion via an unregistered, continuing digital asset securities offering,” according to comments made by Ripple CEO Brad Garlinghouse.
Garlinghouse said in a Davos fireside chat with CNBC that a settlement would only be feasible if the SEC established that $XRP is not a security. The difficulty in this situation, according to the CEO, is that SEC Chairman Gary Gensler has “articulated a perspective that all crypto is a security.”
Garlinghouse continued, “the only way we would settle is if it becomes clear that XRP is not security going forward. He said that the “Veen diagram for settlement is probably zero,” indicating that a judge’s judgement would resolve the dispute.
According to the CEO of Ripple, a judgement on the case might be issued this year, since the company anticipates a decision “definitely in 2023.” He noted that it is hard to influence the timing of a judge’s decision, but he is hopeful that a ruling will be rendered “within a few months.”
Garlinghouse supported the fintech company that has been fighting for the bitcoin sector as a whole. Coinbase, the Blockchain Association, and SpendTheBits, among others, have requested the federal court for permission to write a friend-of-the-court brief in the continuing litigation.
CryptoGlobe claimed that The U.S. Securities and Exchange Commission’s action against Ripple and two of its executives may soon be resolved, according to Jeremy Hogan, an advocate for $XRP and an attorney in the United States.
Notably, Hogan has said that the dispute settlement might result in an XRP supply shock, which would likely lead to a price increase since demand would stay the same but supply would drop. When both parties requested for a summary judgement, the price of XRP dramatically skyrocketed in the cryptocurrency world.