Ripple CEO Brad Garlinghouse expresses optimism about reaching a final resolution soon in the lawsuit against the U.S. Securities and Exchange Commission (SEC).
The Ripple exec asserted during a recent Bloomberg Markets: The Close interview. While Garlinghouse is optimistic about an imminent resolution, he acknowledged the uncertainty in predicting the timing of the highly anticipated final judgment.
“We expect resolution very soon, but we can’t predict exactly when the judge will rule,” Garlinghouse remarked.
🧐 BRAD GARLINGHOUSE ON A POTENTIAL SETTLEMENT WITH THE SEC ➡️ "I CAN´T COMMENT ON THAT SPECIFICALLY […] WE EXPECT A RESOLUTION VERY SOON" @bgarlinghouse @Ripple #XRP https://t.co/lWEgidOA7c pic.twitter.com/gR4iKMM22v
— XRP DROPZ (@DROPZXRP) July 17, 2024
This is not the first time that Garlinghouse has speculated on the imminent resolution of the SEC’s lawsuit. Last month, he predicted that Judge Analisa Torres would issue the final verdict this year, specifically before the end of summer 2024.
Garlinghouse Declines to Comment on Ongoing Settlement Talks with SEC
During the recent interview, Romaine Bostick, one of the anchors of Bloomberg’s The Close, asked Garlinghouse to comment on whether the company is currently in settlement talks with the SEC.
Responding, Garlinghouse refused to provide specific comments on the matter.
“I can’t comment on that [ongoing settlement talks] right now,” he said.
However, he acknowledged that Judge Torres had provided clarity on major aspects of the lawsuits during the summary judgment decision issued on July 13, 2023.
Final Piece of SEC Lawsuit
He stated that the only piece currently under litigation relates to the company’s XRP sales to institutional investors.
“The ruling has been clear from the judge. There is one final piece, as you referenced- investment contracts sold to institutions,” Garlinghouse added.
Recall that Judge Torres held that XRP institutional sales constitute investment contacts. The parties are currently in the remedies phase, awaiting the court’s final judgment that could determine the appropriate penalty for Ripple’s securities law violation.
Debates About Possible Settlement in SEC v. Ripple
Meanwhile, the issue of potential settlement in the lawsuit has stirred a major debate within the crypto community. While some people speculated that the lawsuit could end in a settlement, others believed the case would be decided via a court verdict.
Notably, Ripple is open to settling the lawsuit if the SEC labels XRP a non-security. Conversely, the regulator has not publicly shown interest in a settlement.
Speaking in the interview from Milwaukee, the Ripple CEO emphasized that the court has already ruled that XRP is not a security.
His comments about a potential settlement come as the SEC prepares for a closed-door meeting today. As reported earlier, three of the four topics to be discussed in the meeting revolve around settling injunctive actions and administrative proceedings and resolving litigation claims.
It is unclear whether the regulator might comment on settling its legal tussle with Ripple during the meeting scheduled for 2 PM (ET) today.
In the meantime, the SEC has not hinted at plans to settle with Ripple. The regulatory agency is sticking to the court to resolve the matter. Recall that the lawsuit received its major ruling on July 13, 2023, when Judge Torres held that XRP in itself is not a security.
Additionally, she declared that Ripple’s sales of XRP to retail investors on digital exchanges and other distributions of the coin do not constitute investment contracts. Ripple’s only defeat in the decision was on institutional sales, which were labeled securities.
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