tl;dr
Ripple CEO Brad Garlinghouse anticipates a resolution in the ongoing legal battle with the SEC over the status of XRP as an investment contract. Despite a partial victory last year, the question of XRP's classification for institutional sales remains. The lawsuit has impacted XRP's price, which curr...
Ripple CEO Brad Garlinghouse anticipates a resolution in the ongoing legal battle with the SEC over the status of XRP as an investment contract. Despite a partial victory last year, the question of XRP's classification for institutional sales remains. The lawsuit has impacted XRP's price, which currently stands at $0.576, experiencing a 5.5% decline in the last 24 hours. Garlinghouse emphasizes the need for clear crypto regulations to avoid prolonged litigations and criticizes the SEC's approach under Chair Gary Gensler. He highlights the necessity for definitive rules, contrasting with the EU's MiCA legislation.
Ripple CEO Brad Garlinghouse expects a resolution of the longstanding case with the Securities and Exchange Commission (SEC). The SEC and Ripple have seen several back-and-forths regarding the status of XRP as an institutional investment contract. Last year, a ruling gave Ripple a partial victory over the SEC, which was celebrated as a landmark decision. Brad Garlinghouse stated that the ruling on the case last year was clear from the judge, however, the question of investment contracts sold to institutions remains the final piece. In a recent Bloomberg interview, Garlinghouse explained that while he expects a resolution on the last piece with the SEC, but can’t predict when the judge will give a final ruling.
Since Dec 2020, Ripple and the financial regulator have engaged in a legal dispute with the SEC asserting that XRP is a security. While Ripple and the crypto community opposed that stance, the company gained a partial victory last year that is expected to reshape how crypto assets are viewed by regulators. The lawsuit affected the price of XRP as the asset hasn’t surged like others in the same period following a decline in sentiments. At press time, XRP price stands at $0.576, a 5.5% decline in the last 24 hours after surging 28% last week. XRP bulls have made wild projections of the asset hitting $1 after its case with the SEC.
Like the wider crypto market, Garlinghouse stressed crypto regulation to prevent the proliferation of lawsuits and harsh policies of the SEC. According to him, SEC chair Gary Gensler is at war with the industry. Drawing lines with the European Union’s MiCA legislation, he added that the U.S. market needs clear rules.