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Ripple Garlinghouse's CEO expects the long-standing dispute with the securities commission (sec) to be finalized within "one-month periods" and remain confident that a favourable outcome will be reached.
Speaking to CNBC on Jan. 18 at the World Economic Forum in Davos, Switzerland, Garlinghouse said the verdict could come as soon as June this year now that both parties have “fully filled and fully briefed” their arguments before the U.S. District Court:
"We anticipate that a judge will render a decision in 2023. We have little control over the decisions of a judge. But I am hopeful that in the next few months we will have an end in sight."
While Garlinghouse and investors believe the facts, law and the court will ultimately side with Ripple, the Ripple CEO also took the opportunity to ridicule the SEC’s “embarrassing” behavior displayed throughout the lawsuit, noting:
“The SEC’s behavior in some of it has been embarrassing as a U.S. citizen. Just a couple of things that happened, as if you were joking."
Garlinghouse also argued that the company was betrayed by the regulator, which filed suit in spite of its efforts to meet with them three times to seek clarification on the regulations:
"Never once was I told that we thought the XRP could be safe. So to later go back and say hey the whole time we thought XRP was a security we just didn’t tell you… that doesn’t feel like a genuine partnership between public sector and private sector.”
Although noting that the result of the case also has enormous implications for the cryptocurrency industry, Garlinghouse reiterated that Ripple would only resolve the matter if it was clearly established that it was not a guarantee.
However, "The dry and gary gensler has very externally said that he regards almost all crypto as a security" garlinghouse said, "so this leaves very little room in the venn chart for the establishment," he added.
Garlinghouse added that the U.S. SEC should take note from some of the more crypto-friendly countries who are piecing together more “positive” regulation that doesn’t stifle innovation.
Among the countries he spoke highly of included the the United Arab Emirates, Japan, Singapore, Switzerland and the U.K.
Related: Ripple files final submission against SEC as landmark case nears end
The lawsuit was initiated by the SEC in December 2020, claiming that Ripple illegally sold its XRP token as an unregistered security.
Ripple has long disputed the claim, arguing that it doesn’t constitute an investment contract under the Howey test.
If both parties are unable to reach an agreement, the New York District Court will issue a stand-alone decision or submit the case to a jury in a trial.
