The CEO of Ripple, Brad Garlinghouse, believes that the lawsuit with the U.S. Securities and Exchange Commission (SEC) could conclude as soon as next year. Back in December 2020, the SEC started a lawsuit against Ripple claiming that they sold a Security (XRP) to investors all around the world.
Brad Garlinghouse Believes SEC Case Against Ripple Could Conclude in 2023
In an interview with DC Fintech Week, Brad Garlinghouse, the CEO of Ripple said that he believes that the lawsuit that is currently open with the Securities and Exchange Commission could reach an end as soon as during the first half of 2023.
In December 2020, the SEC filed a lawsuit against Ripple, a company offering payment solutions to companies around the world, due to their use of the XRP virtual currency. According to the SEC, Ripple sold unregistered securities (XRP) to investors all over the world.
XRP is one of the largest virtual currencies in the market. It allows companies and users to send and receive transactions in seconds and with almost no fees. Therefore, it is a great option, especially for large companies, to settle payments.
While SWIFT transfers across borders take a few days to get processed (and the funds get settled at a later date), XRP could make payments around the world faster. That means that a bank could convert funds into local currency using XRP, send the funds to another company in another country, and sell the XRP for local currency.
There have been several banks working with different Ripple products. However, the lawsuit with the SEC was one of the things that put a stop to Ripple’s expansion in the market in recent years, especially during 2021. Nonetheless, XRP remained among the top 10 virtual currencies in the market and continues to attract investors.
In the conversation with DC Fintech Week, Garlinghouse talked about how the case evolved over the last years and how it could get settled in the near future. Nevertheless, there are still some things that should get defined before getting a decision from the court, which might yet take some time.
XRP performance over the last 90 days has been much better than other virtual currencies, including Bitcoin (BTC). According to data shared by CoinGecko, XRP is now being traded at close to $0.48 when in September it was traded below $0.33. Hence, the last month has been quite positive for XRP.
If the lawsuit ends with a positive verdict for Ripple, then XRP could start to move higher as well. A larger number of companies could adopt Ripple solutions and embrace XRP as a payment method to process cross-border transfers.
It is also worth taking into consideration that XRP has been among the most volatile virtual currencies in the top 10. Therefore, it could be possible to see XRP experience strong moves higher and lower according to the most recent news on Ripple and the current lawsuit with the SEC.