Ripple CEO Optimistic On SEC Case, Why XRP Saw Weak Response

In an interview with CNBC, Ripple CEO Brad Garlinghouse revealed to feels optimistic about the company’s future and its legal battle. U.S. Securities and Exchange Commission (SEC), sued the payment solutions company in 2019 over alleged illegal sale of security XRP.

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The regulators were initially expected to win the battle. This led to a decrease in the value of XRP, which is the cryptocurrency used by the XRP Ledger and some other products made by the payment company.

Ripple, however has made good use of its resources and seems to be winning the game. In court, the payment solution company has presented evidence that claims the SEC was made aware of XRP, and Ripple’s business model with the cryptocurrency using a product called Ripple Network.

The evidence goes as back as 2013 and includes documents that suggest the SEC failed to provide clarity over the digital asset’s classification as a security. Legal experts believe that the evidence may prove to the court Ripple actively sought to comply with U.S. Securities Law.

Garlinghouse said that in this sense Garlinghouse shared with CNBC his view of the situation:

It has been a great success, far better than what I had hoped for when the lawsuit began 15 months ago. The wheels of justice are moving slowly.

Ripple may continue to benefit from additional evidence. CNBC reported that the judge in the case ruled against SEC editors editing emails regarding how they have treated XRP, and other cryptocurrencies including Ethereum.

It is the second-largest crypto market cap. There are no current cases against it, as it has not been deemed to be a security. Ripple could win if it can prove that XRP/ETH are decentralized cryptocurrencies.

Ripple-touched Bottom, Just Up from Here

Ripple’s operations have not been affected by the legal dispute. According to its CEO, the company is “already operating in the worst-case scenario”, but registers “record growth” outside of the United States.

On the other hand, the XRP token records a 7% profit in the last 24-hours potentially as a reaction to Garlinghouse’s statements. The market appears to positively price any legal developments with the SEC. However, the macro-economic outlook for risk-on assets still looks unfavorable.

Higher time frames show that the token is not at its high of $2 in 2021. XRP could reach those levels if the case is resolved in a positive manner.

Ripple XRP XRPUSDT
XRP tends to be down on the daily chart. Source: XRPUSD tradingview

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Garlinghouse added the following on the importance of Ripple’s case for the crypto industry:

This case is important, not just for Ripple; it’s important for the entire crypto industry in the United States. It would really be negative for crypto in the United States (…). We must know all people who own XRP in order to make XRP a Ripple security. That’s an SEC requirement. It is essential that you know the names of all your shareholders. It’s not possible.

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