The US Securities and Exchange Commission (SEC) is suing Ripple, the firm that created the cryptocurrency XRP, alleging that it sold unregistered securities. Since December 2020, the legal dispute has been continuing on, and it has had a detrimental impact on the price of XRP, which has dropped by 3% in the last day.
But, Brad Garlinghouse, the CEO of Ripple, is hopeful that Gary Gensler, the newly appointed chair of the SEC, will take a more pro-crypto attitude and settle the matter involving Ripple. In a recent interview with CNBC, Garlinghouse expressed his expectation that the issue will be resolved by the end of 2023 or the beginning of 2024 and expressed his wish for a positive interaction with Gensler and his team.
Garlinghouse supported Ripple’s stance as well, asserting that XRP is a digital asset used for remittances and cross-border payments rather than a security. He maintained that XRP has a clear use case and utility and is faster, cheaper, and more efficient than conventional payment systems.
Additionally, he emphasized that the SEC’s case contradicts the opinions of international regulators, including those in the UK, Japan, Singapore, and Switzerland, who have classed XRP as a commodity or currency rather than a security. According to him, the crypto market is confused and unclear because the US is the only nation with a different position on XRP.
In addition, Garlinghouse discussed the recent US approval of Bitcoin exchange-traded funds (ETFs), calling it a validation of the industry’s potential and a step in the right direction. He stated that he believes the SEC will offer additional clarification and guidance for other crypto assets, such as XRP, and that he anticipates the launch of other crypto ETFs in the future.
A lot of exchanges and platforms have delisted or suspended XRP trading as a result of the SEC’s action, and the price of XRP has been battling to rebound as a result. XRP is presently trading at $0.40, down 3% over the past day and 15% over the past week, according to CoinMarketCap.
Nonetheless, a few of analysts and investors maintain their bullish outlook on XRP, speculating that it may recover from the current legal problems. In addition, some people think that Ripple might go public once the litigation is resolved, which would increase the value and use of XRP.
