Garlinghouse reiterates that Ripple is willing to settle with the SEC if the agency provides clarity for XRP that will help US institutions like Bank of America gain a competitive advantage by using Ripple ODL.
Ripple Labs’ CEO Brad Garlingouse reiterated that the leading blockchain company would settle with the Securities and Exchange Commission (SEC) only if the federal agency provided regulatory clarity for XRP.
Garlinghouse disclosed this to Linqto Director of Member Sales Nick Burrafato at the recently concluded Ripple Swell 2022 held in London.
“I met with Brad Garlinghouse face-to-face, and he made it clear that [Ripple] is ready to settle with the SEC as long as they can get clarity on XRP,” Burrafato said.
According to Linqto’s Director of Member Sales, Garlinghouse further revealed that American financial institutions are following developments in the ongoing lawsuit between the SEC and Ripple. He added that these companies would join the Ripple bandwagon when the blockchain company settles with the SEC.
Burrafato said Garlinghouse was specific about Bank of America. The Ripple exec believes Bank of America will gain a competitive advantage when the blockchain company settles with the Securities and Exchange Commission.
“Bank of America is going to gain a competitive advantage when the SEC v. Ripple case settles, by using ODL in the marketplace,” Linqto noted in a tweet.
Ripple Labs CEO Brad Garlinghouse stated to Linqto Director of Member Sales Nick Burrafato at Ripple Swell 2022 in London that "Bank of America is going to gain a competitive advantage when the SEC v Ripple case settles, by using ODL in the marketplace." https://t.co/y8g5cOdYZT pic.twitter.com/RDzGgmj8GV
— Linqto (@linqtoinc) November 21, 2022
In November 2020, Ripple listed Bank of America as a leading member of its global payment network, RippleNet. Despite the Ripple vs. SEC lawsuit, Bank of America is still listed among the financial institutions in the network.
Ripple Open to Settle With SEC
Meanwhile, Garlinghouse has always been open to settling with the Securities and Exchange Commission. Ripple would want the SEC to agree that XRP is not a security for this to happen. However, it does not seem like it will happen as the SEC is committed to proving that XRP is a security using the Howey test.
It bears mentioning that Ripple failed to settle with the SEC before the company was sued. The parties have filed motions, oppositions, and replies for summary judgment.
Last week, the XRP community was enthusiastic over rumors of a settlement between Ripple and the SEC. The jubilation pumped the price of XRP by over 10%. However, XRP holders’ expectations were cut short as the expected settlement did not happen.
The SEC recently won a similar lawsuit against peer-to-peer network LBRY earlier this month, thus giving the agency confidence that it will also win the Ripple lawsuit. XRP proponents believe that Ripple has a better fighting chance in proving that cryptocurrency is not a security.