In an interview with CNBC, Ripple CEO Brad Garlinghouse said that the fintech firm is making great strides in its battle with the US SEC. Garlinghouse said he expects the case, which centers on XRP, the world’s seventh-biggest cryptocurrency, will likely reach a conclusion next year. “We’re seeing pretty good progress despite a slow-moving judicial process,” he noted.
Garlinghouse said he was hopeful there would be closure next year.
“Clearly we’re seeing good questions asked by the judge. And I think the judge realizes this is not just about Ripple, this will have broader implications,” the CEO observed. Garlinghouse said he was hopeful there would be closure next year. Ripple, which is based in San Francisco, generated a lot of buzz during the crypto frenzy of late 2017 and 2018, which saw the prices of bitcoin, ether, and other cryptocurrencies skyrocket to record highs. XRP, a token Ripple is closely associated with, benefited from that rally, hitting an all-time high above $3.
The SEC has alleged that Ripple’s executives sold $1.3 billion worth of the tokens in unregistered securities.
The US SEC is concerned about Ripple’s ties to XRP, alleging the fintech company and its executives sold $1.3 billion worth of the tokens in an unregistered securities offering. But Ripple contends that XRP should not be considered a security, a classification that would bring it under much more regulatory scrutiny. It comes as regulators worldwide are taking a closer look at crypto, a market that is still largely unregulated but has boomed in the last year. Garlinghouse said the United Arab Emirates, Japan, Singapore, and Switzerland were examples of countries showing “leadership” when it comes to regulating crypto, while China and India have cracked down on the industry.