- In a recent development, Ripple CEO Brad Garlinghouse speculated on the conclusion of the ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC).
- Both Garlinghouse and Ripple’s CTO, David Schwartz, made their first joint appearance at the XRPLApex2024 event to discuss the matter.
- During the event, Garlinghouse hinted at the potential timeline for the lawsuit’s resolution, expressing optimism about its near end.
Ripple CEO Brad Garlinghouse projects the SEC lawsuit’s conclusion could be by the end of summer, urging attention to the precise developments in the case.
SEC Lawsuit Potentially Concluding Soon
Ripple’s CEO Brad Garlinghouse, during his appearance at the XRPLApex2024 event with CTO David Schwartz, indicated that the longstanding legal battle with the SEC might be nearing its resolution. He emphasized that while the ultimate decision rests with the judge, there is a good chance of the case concluding by the end of summer.
Insight into the Lawsuit’s Progress
The legal entanglement began in December 2020 when the SEC sued Ripple, Garlinghouse, and Executive Chairman Chris Larsen, claiming that XRP was being sold as an unregistered security. However, a significant turn of events occurred in July 2023, when a court ruled that sales of XRP to retail investors did not qualify as securities transactions. This ruling marked a crucial victory for Ripple.
SEC Withdraws Specific Claims Against Ripple Executives
In a notable shift, later in the year, the SEC chose to withdraw specific allegations against Garlinghouse and Larsen. This move was interpreted as an acknowledgment of the weakened position of the SEC’s case against Ripple, aligning with the earlier court decision that favored the blockchain company’s stance on XRP not being a security for retail transactions.
Negotiations over Penalties
Amidst these developments, the SEC has proposed a staggering $2 billion penalty for Ripple, citing the sale of XRP to institutional investors. Ripple, referencing recent legal precedents such as the Terraform Labs case, has pushed back against this demand. The company has argued for a significantly reduced penalty, advocating for a $10 million settlement to close the case.
Conclusion
As the legal battle between Ripple and the SEC inches closer to a resolution, stakeholders within the cryptocurrency community remain keenly observant. The case’s outcome could set a precedent for how digital assets are regulated in the United States. Ripple’s pushback against the hefty fine and its effort to settle the lawsuit indicate a desire to move forward and continue its operations without the looming shadow of legal uncertainty.
