Ripple CEO Expects Long-Running SEC Lawsuit to End Soon

• Ripple’s CEO has hinted at a possible resolution with the SEC.
• XRP has swung wildly on a delayed SEC meeting and settlement rumors.
• Ripple’s CEO has called for bipartisan regulations to foster innovation.

The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has cast a long shadow over the cryptocurrency industry. In a recent interview with Bloomberg, Ripple CEO Brad Garlinghouse offered a glimmer of hope, suggesting the lawsuit might conclude “very soon.”

While Garlinghouse remained tight-lipped on specifics, his optimistic tone sent ripples through the crypto community. The news comes after a volatile week for XRP, with its price fluctuating wildly on rumors of a potential settlement with the SEC.

XRP Swings Amidst Ripple vs. SEC Update

The news comes after a volatile week for Ripple’s affiliated cryptocurrency, XRP . The token saw a surge in price earlier this week, fueled by speculation of an imminent settlement between Ripple and the SEC . However, those gains were short-lived, with XRP retracing after a reported cancellation of a private meeting between the two parties.

Garlinghouse characterized the case as a landmark one for the crypto space. He stressed that Ripple is committed to advocating for clear regulations in the U.S., arguing that the lack of a defined framework hinders innovation. He criticized the SEC’s approach of regulating through enforcement actions, which he believes stifles growth.

"We're not asking for a free pass," Garlinghouse asserted. "Most people in the crypto industry are good actors who want to follow the rules. We just need those rules to be clear and consistent."

The legal dispute centers around the SEC’s claim that XRP is an unregistered security. In a small victory for Ripple, Judge Analisa Torres ruled in July 2023 that secondary sales of XRP did not constitute a securities offering . Despite this, the broader lawsuit continues to cloud the regulatory landscape for Ripple and the cryptocurrency industry as a whole.

Ripple CEO Warns Against Partisanship

The ongoing legal battle has been costly for Ripple. Garlinghouse revealed that the company had spent over $150 million in legal fees during the three-year fight. “We can’t do that with every single token,” he emphasized, highlighting the broader implications of the lawsuit for the cryptocurrency industry.

The Ripple CEO also weighed in on the potential impact of the upcoming U.S. elections on cryptocurrency regulation. While acknowledging a growing “legislative momentum” on both sides of the political aisle, he cautioned against crypto becoming a partisan issue.

With the Ripple-SEC lawsuit nearing its end, the industry awaits a definitive answer on the regulatory status of XRP and other cryptocurrencies. Garlinghouse’s call for clear regulations reflects a broader sentiment within the crypto space, highlighting the need for a legal framework that fosters innovation without stifling growth.

On the Flipside

• Even if the Ripple lawsuit concludes soon, the decision might be appealed, dragging on the regulatory uncertainty for XRP and cryptocurrencies.
• The upcoming U.S. elections could introduce partisan divides that might hinder progress toward clear and consistent cryptocurrency regulations.
• Despite “legislative momentum,” Congress might take significant time to pass comprehensive cryptocurrency regulations.

Why This Matters

A clear resolution in the Ripple-SEC lawsuit would set a precedent for how the SEC classifies and regulates cryptocurrencies, impacting not just XRP but potentially all digital assets in the U.S. This could pave the way for a more predictable regulatory environment, which many believe is crucial for mainstream adoption and sustained growth of the entire crypto market.

To learn more about the ongoing lawsuit between Ripple and the SEC and the recent cancellation and rescheduling of a closed-door meeting, read here:
SEC Ripple Talks Still On: What’s Next After the Delay?

To learn more about the impact of the cancellation of a closed-door meeting between Ripple and the SEC on XRP prices, read here:
SEC Calls Off Ripple Private Meeting: What Happened?