The ongoing legal feud between embattled blockchain payments firm Ripple Labs Inc and the United States Securities and Exchange Commission (SEC) over the status of XRP coin as security seems to be going in favor of the former according to the Chief Executive Officer, Brad Garlinghouse.
Garlinghouse said he expects the Ripple and SEC case which has been dragged all year long to be concluded in 2022. He noted that the delay is centered on the fact that the presiding judge understands the severity of the case to the broader industry.
“We’re seeing pretty good progress despite a slow-moving judicial process,” he said. “Clearly we’re seeing good questions asked by the judge. And I think the judge realizes this is not just about Ripple, this will have broader implications.”
Back in December 2020, the SEC, under the leadership of Jay Clayton sued Ripple for being involved in the sale of XRP coin which it terms unregistered securities. The standing of the market regulator has been refuted time and again by the San Francisco-based firm, and the duo has had an elongated court proceeding on the matter.
Amongst the crux of Ripple’s defense is the discrepancies behind classifying Bitcoin and Ethereum as commodities while XRP is classified differently. The presiding judge over the case, Sarah Netburn, granted Ripple access to SEC documents on Bitcoin and Ethereum as the payments firm fought to establish its beliefs that it has often dealt with the XRP coin as a mere utility token.
Pushing for Grounded Regulations
While there has been a series of allegations and counter-allegations in the course of this ongoing Ripple and SEC lawsuit. One of these allegations was posited by Garlinghouse himself that the SEC helped push Ethereum to surpass XRP, the ultimate take home for industry stakeholders is for this event to spin the SEC to create clear regulations to govern the fast-growing crypto industry.
Garlinghouse acknowledged the strides of countries like the United Arab Emirates, Japan, Singapore, and Switzerland in serving as leadership examples when it comes to regulating crypto, while China and India went on the offensive in cracking down on the industry this year.
Garlinghouse noted that the regulatory push is positive for the industry, a charge that most trading platforms, including Bitstamp, Binance, and Kraken amongst others, are hoping to adhere to moving forward.