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Ripple is seeing 'good progress' in the SEC case over XRP, the outcome expected next year

Ripple is seeing 'good progress' in the SEC case over XRP, the outcome expected next year

November 24, 2021: -Fintech company Ripple makes great strides in its legal feud with the U.S. Securities and Exchange Commission, CEO Brad Garlinghouse told CNBC on Monday.

Garlinghouse said he is escaping the case, which centers on XRP, the world’s seventh-biggest cryptocurrency will likely conclude next year.

“We’re seeing pretty good progress despite a slow-moving judicial process,” he told CNBC.

“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.”

Garlinghouse said he was hopeful there would be closure in the coming year.

Based in San Francisco, Ripple generated a lot of buzz during the crypto frenzy of late 2017 and 2018, seeing the prices of bitcoin, ether, and other cryptocurrencies skyrocket to record highs.

XRP, a token Ripple is associated with, benefited from that rally, hitting an all-time high above $3. It’s declined dramatically from that price but is riding the latest crypto wave with an over 370% gain year-to-date

Ripple’s technology is designed to let banks and financial services firms send money across borders faster and at a lower cost. The company markets another product that utilizes XRP for cross-border payments known as On-Demand Liquidity.

The SEC is concerned about Ripple’s ties to XRP, which alleged the company and its executives sold $1.3 billion worth of the tokens in an unregistered securities offering. But Ripple believes that XRP should not be considered a security, a classification that would bring it under much more regulatory scrutiny.

It comes as regulators worldwide take a closer look at crypto, a market that is still unregulated but has boomed in the previous year.

Garlinghouse said the United Arab Emirates, Japan, Singapore, and Switzerland are examples of countries showing “leadership” in regulating crypto, while China and India are cracking down on the industry.

“In general, the direction of travel is very positive,” Garlinghouse said.

Brady Dougan, the former CEO of Credit Suisse, said regulation is a critical area in crypto that develops over time.

“It’s a market that’s early in its development,” Dougan, running fintech firm Exos, told CNBC. “I think it’s a healthy market, and it will continue to develop positively.”

Ripple was last valued at $10 billion and counts the likes of Alphabet’s venture capital arm GV, Andreessen Horowitz, and Japan’s SBI Holdings as investors.

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