“The facts aren’t in dispute here. The law is in dispute,” says Ripple CEO Brad Garlinghouse.
In an interview with Fox Business on Thursday, In response to the SEC lawsuit, Garlinghouse stated that he believes the case will not go to trial because the judge has enough evidence to rule from the bench.
The SEC is currently suing Ripple, alleging that it sold $1.3 billion in unregistered securities.
Both parties filed motions for summary judgment in the Southern District of New York last weekend, asking district judge Analisa Torres to rule on the facts presented in their respective briefs, whether to rule in favor of one of the parties or to send the case to trial.
Garlinghouse commented:
We think [the judge] has the necessary information to make the ruling and we think it’s very clear that the SEC is grossly overreaching its authority.
The SEC sued Ripple and its two CEOs, Brad Garlinghouse and Chris Larsen, in December 2020 for failing to register XRP with the commission, putting the tokens in violation of federal securities laws.
Ripple claims that it never had any investment contract with any XRP buyer. According to court precedent, Ripple’s XRP sales should have been registered with the SEC.
The CEO says in his Fox interview that the SEC has lost its way and that while Congress gives the SEC power, the SEC cannot simply take it.
According to lawyers close to the case, Judge Torres is unlikely to rule on the summary judgment motions until next year.
In contrast, Garlinghouse stated in another interview that the lawsuit between Ripple and the Securities and Exchange Commission would most likely end soon. According to the Ripple CEO, Judge Torres could rule on the lawsuit’s final outcome within 2-9 months, and the lawsuit will most likely be settled by June 2023.
In response, attorney John Deaton, who is representing over 72,000 XRP holders in a class action against the SEC, says the Ripple CEO’s statements may have angered XRP investors.
Ripple‘s token, XRP, which was already up 6% on the day, jumped another 18% after Garlinghouse’s TV appearance and comments.
This lawsuit is very critical for the crypto industry as a whole. If the SEC wins the case, XRP will be classified as a security rather than a currency in the US.
