Ripple CEO Brad Garlinghouse has expressed optimism regarding the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), hinting at a potential resolution in the near future.
Speaking during an interview with Bloomberg, Garlinghouse emphasized the urgent need for regulatory clarity in the cryptocurrency space, a sentiment shared widely across the industry. He highlighted that Ripple, along with other players, seeks a clear framework that would foster innovation while ensuring compliance with established rules.
“Our message is really that we as an industry want to be regulated; we want to have the clarity of that regulation,” he stated.
Reflecting on the current regulatory environment under the Biden administration, Garlinghouse criticized the lack of definitive rules governing digital assets, which he argued has hindered innovation and clarity in the market.
“Five years later, after Ripple was sued by the United States SEC, we still don’t have clarity on those rules of the road,” he lamented.
Further, asked about if Ripple has been having settlement talks with the SEC, Garlinghouse remained cautiously optimistic about their ongoing discussions, indicating that a resolution could be imminent.
“We expect resolution very soon,” he asserted, though he refrained from specifying a definitive timeline for when an agreement might be reached.
Notably, the legal battle between Ripple and the SEC dates back to 2020 when the SEC alleged that XRP, Ripple’s native cryptocurrency, was an unregistered security. However, a significant development occurred last July when a federal judge ruled in favor of Ripple Labs, determining that XRP itself did not constitute a security. This ruling marked a pivotal moment for Ripple and the broader cryptocurrency industry, setting a precedent for future regulatory clarity.
The CEO’s remarks come amid growing frustration within the industry over what many perceive as regulatory overreach by the SEC under Chairman Gary Gensler. Last week, while celebrating one year since the July 2023 watershed ruling, Garlinghouse criticized the SEC’s ‘ramped up war on crypto,” expressing optimism that Ripple would continue to win against the agency’s unlawful war on the crypto industry.
That said, amid these developments, the crypto community continues to wait eagerly for a potential settlement, with report of a meeting on Thursday July 18, between the SEC and Ripple fueling that optimism. At press time, however, ZyCrypto can confirm that the meeting had been cancelled.
Meanwhile, XRP has continued to exhibit strength amidst these developments, having surged more than 28% over the past week. As of press time, it remains the top gainer among the top 10 cryptocurrencies by market capitalization, reflecting robust investor optimism in the Ripple ecosystem.
