The CEO of Ripple, Brad Garlinghouse, told Bloomberg that he was optimism that the company’s long-running court battle with the Securities and Exchange Commission (SEC) would soon be over.
As of December 2020, the main point of contention is whether Ripple’s digital asset XRP is a security. During the years, the case has gone through many changes, and both sides have made strong arguments.
In some ways, Ripple won a partial victory last year when a decision supported their case. People in the cryptocurrency industry saw this decision as a turning point that could change how regulators look at digital assets.
Ripple Court Case Impact
Furthermore, according to Garlinghouse, it’s still not clear if XRP is a major investment contract or not. He said that it’s still hard to say when the final choice will be made, even though he thinks the outcome will be favorable.
The court case has had a major effect on how well XRP has done in the market. Investors lost faith in XRP after the first case, which is why its price went down instead of up like other cryptocurrencies.
XRP is worth $0.576, which is 5.5% less than it was 24 hours ago but 28% more than it was a week ago. The ongoing doubt is still putting a damper on the price of the asset, but investors who think it will go up to $1 if Ripple wins completely predict that it will do so.
Garlinghouse also stressed the need for better rules and regulations to avoid similar legal problems in the future. He used the Markets in Crypto-Assets (MiCA) law in the European Union as an example, saying that the U.S. market needs the same level of clarity.
Garlinghouse said that the current rules are too adverse for the crypto business and slammed Gary Gensler, the chair of the SEC, for this.
“… and what frustrating as a US company and as someone who grew up here in the Midwest, it’s frustrating that we as a country can’t get that rules in place, the framework, and instead we have this interminable litigations coming from the SEC that isn’t really solving the problem.”
