According to Ripple‘s CEO, the long-running conflict between his company and the US Securities and Exchange Commission (SEC) is coming to a conclusion.
Despite a “slow-moving court procedure,” Brad Garlinghouse noted that progress had been made in the case. He told CNBC that the Ripple lawsuit will most likely be resolved by 2022.
“Clearly, the judge is asking good questions,” Garlinghouse said, adding that “the judge understands this isn’t just about Ripple; this will have larger repercussions.”
Since 2013, the SEC has accused Ripple of marketing unregistered securities in the form of XRP coins, according to the SEC. The assertions faced opposition from the company, who said that XRP should not be classified as a security.
The SEC claimed Ripple received legal guidance from its legal consultants that XRP may be a securities before proceeding with its token sale, and filed a move to get access to the defendant’s legal counsel. The court refused the motion, and cited the attorney-client privilege as justification.
Ripple executives presented their perspectives on the lawsuit and its influence on the company throughout the course of the year. The SEC action had no impact on the company’s development into the Asia-Pacific area, according to Garlinghouse. As soon as the conflict comes to an end, the business is considering an IPO.
XRP token owners showed their support by filing “friends of the court” filings. Allowing them to join the lawsuit as defendants and back Ripple’s assertions that the token does not violate securities laws. In October, however, the judge determined that individual XRP holders cannot be as defendants in Ripple’s continuing litigation.