Ripple Labs CEO Brad Garlinghouse has stated that he expects a court decision on the ongoing lawsuit brought by the US Securities and Exchange Commission (SEC) against Ripple “in weeks, not months.” The lawsuit, filed in 2020, accuses Ripple of failing to register the XRP cryptocurrency as a security and raising over $1.3 billion through unregistered, ongoing digital asset sales. Ripple has denied these allegations and argued that XRP is a currency, not a security. Garlinghouse also stated that 95% of Ripple’s customers are non-US, and given the regulatory environment, he would not have set up the company in the US if he could go back in time.
Ripple has been aggressively fighting against the SEC’s allegations, with Garlinghouse and co-founder Chris Larsen filing a motion to dismiss the case in March. Ripple has argued that the SEC’s case is based on a flawed legal theory and that XRP operates independently of Ripple as a currency, not a security. The case has been contentious, with Ripple accusing the SEC of causing “multi-billion dollar losses” to XRP holders by filing its lawsuit.
A decision in the case could significantly impact how digital assets are regulated in the US. If the court rules in favor of the SEC, it could establish a precedent for other cryptocurrencies to be treated as securities and subject to greater regulatory oversight. Conversely, if the court rules in favor of Ripple, it could provide greater clarity for the cryptocurrency industry and pave the way for greater adoption of digital assets.
Garlinghouse’s statement that he expects a ruling in the coming weeks is being interpreted by some as a sign that he expects a favorable decision by the court. If this is the case, it would suggest that Ripple’s arguments are being taken seriously by the court, and the SEC’s case is flawed. The cryptocurrency industry eagerly awaits the outcome of this lawsuit, as it could set the tone for digital asset regulation in the US and beyond.