According to the CEO of Ripple, a digital money transfer system using its native token, XRP, the long-running dispute between the company and the SEC, or U.S. Securities and Exchange Commission, is moving toward a conclusion. At least that’s what Brad Garlinghouse stated when speaking with CNBC. Below we will tell you what happened and what the consequences are of Ripple’s dispute with the SEC.
But for starters – what is Ripple anyway?
The Ripple network was designed with banks and financial companies in mind. The main goal behind the creation of the network and the token of the same name is fast cross-border money transfers that will also be low cost.
What happened exactly?
In 2020, Ripple was accused by the SEC that the fintech company’s executives sold XRP tokens worth about $1.4 billion in yet unregistered securities. Ripple found these allegations to be unsubstantiated, citing the claim that XRP tokens do not constitute a security.
So how has the lawsuit progressed, and why does it look like it’s heading towards an end? Well, support has come from holders of XRP tokens. They appeared in the lawsuit as supporters of Ripple, claiming that the token does not actually violate securities laws.
The CEO of Ripple himself, Brad Garlinghouse, is also reporting on the trial. Here is what he said in an interview with CNBC: “The company is making good progress, despite the slow litigation process. We clearly see pertinent questions being asked by the judge. And I think the judge realizes that this is not just about Ripple, it will have broader implications.”
Further development of XRP
To all readers, the question surely arises: has this trial hurt XRP’s growth? Well, within the United States for sure, while the situation is definitely different around Asia-Pacific. This is because Garlinghouse stated that the company’s growth in these areas has not been slowed down by the SEC lawsuit. It is in Asia that Ripple is rapidly moving forward, and the company does not even rule out an IPO, or initial public offering. However, this is all still in the planning stages. For now, Ripple must focus on bringing the conflict with the SEC to an end. And on the successful resolution of this matter!