Garlinghouse previously noted that most cryptos trading on exchanges in the US would be deemed securities if Ripple loses the case.
In December 2020, the US Securities and Exchange Commission (SEC) filed a suit against Ripple Labs executives for selling unregistered securities. In September 2022, Ripple filed a motion in a bid to dismiss the lawsuit claiming XRP is not securities. Similarly, the SEC has requested that the court make a ruling without trial. According to Ripple CEO Brad Garlinghouse, there could be an answer next year.
“I think we’ll have an answer in the first half of next year. Whether that’s the first quarter or second quarter, we shall see,” said Garlinghouse.
Speaking at the DC Fintech Week, Garlinghouse disclosed that the company would consider a settlement with SEC, however, that idea must start with XRP being security.
In his statement, the Ripple CEO recalled how key industry players scoffed at his warning about the case having a significant implication on the entire crypto sector. According to him, this is no longer the case.
“Today, I think everyone acknowledges how important this is for the US and the US leadership around crypto. This is obviously…a bellwether case,” Garlinghouse said.
Garlinghouse previously noted that most cryptos trading on exchanges like Qumas Ai in the US would be deemed securities if Ripple loses the case. This will also require those trading platforms to register with the SEC as broker-dealers. However, he believes that this would not be the case as every person who owns XRP would have to be known if the asset is determined as the security of Ripple.
Last month, the court ordered the SEC to release documents and emails by former SEC Corporation Finance Division Director William Hinman.
In 2018, Hinman mentioned in a speech that XRP was a commodity and/or virtual money. He also mentioned that Ether (ETH) is not a security. SEC contended on his views in the document that it does not reflect the agency’s policy stance. The motion to release Hinman’s speech was blocked by the court.
“The Court has reviewed the remainder of the thorough and well-reasoned Orders for clear error and finds none… Accordingly, the Court OVERRULES the SEC’s objections and directs the SEC to comply with the Orders,” Judge’s letter reads.
XRP is currently down by 1% in the last 24 hours and trading at $0.48. Comparatively, Shiba Inu is also down by 1.2%.
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