It is anticipated that the ongoing legal conflict between the United States SEC and Ripple will ultimately come to a conclusion in the year 2023.
The investigation into the case started in December 2020, and it concerned the payment procedure as well as two of its executives named, Christian Larsen and Bradley Garlinghouse.
According to the allegations (1) made by the Commission, the corporation and the executive were responsible for selling unregistered XRP tokens, which resulted in a revenue of $1.3 billion.
According to the complaint, Ripple first started selling unregistered security offerings to investors in the United States as well as in other areas of the world in the year 2014.
In addition to this allegation, the SEC claimed that Ripple had distributed XRP in exchange for non-cash factors like labor and market-making services.
Ripple, Larsen, and Garlinghouse have been accused of failing to protect investors by restricting their access to information to which they are legally entitled. Further allegations have been brought against these individuals.
Ripple has stated that the XRP token should not be considered an investment contract, despite the fact that the regulatory body asserts that Ripple did not properly register XRP as a security prior to offering it to investors.
Instead, the group mentioned that XRP is utilized in the company’s operations to facilitate international financial dealings between banks and other types of financial institutions.
Ripple CEO Speaks:
Ripple and the SEC’s ongoing legal battle may be settled once and for all in the year 2023. This comes after multiple twists and turns in the conflict.
The corporation’s chief executive officer shared his anticipation that the battle that has lasted for more than two years will be resolved this year. During an interview (2) on March 2 with Bloomberg, Galringouse made the following statement:
“From the beginning of that legal proceeding, about two and a half years have passed. We have labored to make as much headway as possible in the shortest time. The case was completely briefed in front of the federal court, and we do expect a decision to be rendered in 2023 at the latest.”
Earlier, the chief executive officer of Ripple predicted that the case that the company was engaged in with the SEC would be settled during the first half of 2023.
While attending the World Economic Forum in January, he appeared on CNBC’s “Squawk Box Europe” and stated that he was content with the existing scenario “according to the law and the facts.”
Despite the fact that Garlinghouse has stated that he is willing to settle the matter, he does not anticipate that the firm will do so.
“We have always indicated that we would love to settle, but in order to do so, it requires one very crucial element, and that is that, on a go-forward basis, it is obvious that XR is not a security. This is something that we have always insisted upon.
Gary Gensler, chairman of the SEC, has made it quite clear that he considers practically all forms of cryptocurrency to be securities. As a result, the amount of room available for negotiation in the Venn diagram is extremely limited.
The Chief Executive Officer of Ripple discussed the negative impact that the case is having on the cryptocurrency sector in his most recent statement, which was released in response to an expectation that a settlement will be reached in 2023.
He believes that Ripple is receiving support from major participants in the business despite the legal challenges, and he believes that this is because many people have realized that the Commission was not especially targeting the company.
Instead, according to Garlinghouse, he believes that the SEC is indirectly attacking the entire cryptocurrency space.
