The long-standing feud between the distributed ledger technology company Ripple and the US Securities and Exchange Commission is coming to an end, according to Ripple’s CEO.
Brad Garlinghouse noted that progress was being made on the case “despite the slow progression in the process”. Speaking to CNBC, he predicts the Ripple case is likely to close in 2022.
“Obviously we see the judge asking good questions,” Garlinghouse said, adding his belief that “the judge realizes that this is not just about Ripple, it will have far-reaching implications.”
Last year, the SEC charged Ripple with selling unlicensed securities in the form of XRP tokens from 2013. Ripple countered the claims, saying that XRP should not be viewed as a security.
The SEC alleges that Ripple may have learned from its legal advisors that XRP could be a security before proceeding with the token sale and has filed an offer to seek legal advice from the defendants. The court rejected the proposal, citing legal confidentiality.
Related: Ripple outlines possible regulatory framework for the US crypto industry
Over the past year, Ripple executives have provided insight into the incident and its impact on the business. Garlinghouse claims that Ripple’s expansion into the Asia-Pacific region is unaffected by the SEC lawsuit. The company is also considering the option of an IPO once the case is resolved.
Support comes from XRP token holders who filed a “Friend of the Court” brief allowing them to join the case as a defendant and assist Ripple in testifying that the token does not violate securities laws. However, the judge ruled in October that individual XRP owners cannot appear as defendants in Ripple’s ongoing lawsuit.