Ripple CEO Brad Garlinghouse Shares New Details About the End of the SEC Lawsuit

Ripple CEO Brad Garlinghouse recently shared new details about the end of the company's long legal fight with the SEC, now that a new Chair has officially taken over the agency.

The U.S. Securities and Exchange Commission is planning to vote on accepting a $50 million settlement payment from Ripple in cryptocurrency, sources tellDecrypt. The vote is expected to take place on Thursday, July 13, at a closed-door meeting of the SEC commissioners.

If approved, Ripple will pay the sum in its native XRP token to settle the SEC’s lawsuit, which began in December 2020. The agency sued Ripple in December 2020, alleging that the company raised $1.3 billion through an unregistered offering of XRP.

The case has since become a major point of contention in the rapidly evolving landscape of crypto regulation.

Earlier this year, a federal judge ruled in favor of Ripple on two key issues:

1. The SEC’s chairman at the time, Jay Clayton, failed to provide clear guidance on what constitutes a security.

2. The SEC’s actions in policing the crypto market were an abuse of the agency’s power.

This ruling paved the way for a potential settlement, especially now that Chair Gary Gensler is focused on registering new crypto products and exchanges.

Earlier this week, the House Financial Services Committee also advanced a bill that would mandate the SEC to complete its review of new products within six months of an application.

Recently, the SEC reached a separate settlement with cryptocurrency exchange Binance in which Binance will cooperate with the agency in its ongoing investigation. The agency is also nearing a settlement with Coinbase, though there are still some outstanding issues to resolve.

After a long-winding legal battle that spanned three years, crypto firm Ripple and the U.S. Securities and Exchange Commission (SEC) are nearing a resolution to their highly publicized case.

Now, new details have emerged regarding the final stages of this case and what exactly is at stake for both parties.

According to a recent report by Fox Business, Ripple’s CEO, Brad Garlinghouse, provided an update on the case and touched upon the broader changes in how the U.S. government views cryptocurrency.

Garlinghouse’s Interview Highlights Key Points in Ripple’s SEC Case

The interview touched upon the pending resolution of Ripple’s case with the SEC, and how this could impact the future of crypto regulation in the U.S.

Garlinghouse noted that there’s a shift in how the government is approaching digital assets, presenting new opportunities for the industry.

He also discussed Ripple’s recent $2 billion acquisition of Hidden Road, one of the largest deals in crypto history. Garlinghouse highlighted that such a move wouldn’t have made sense a year ago, given the regulatory climate and the fact that the SEC was sued by several crypto firms.

However, with the agency’s stance shifting and new Chair Mary Jo White has officially taken over the agency, and the agency is now focused on registering new crypto products and exchanges. The House Financial Services Committee also recently advanced a bill that would mandate the SEC to complete its review of new products within six months of an application.

Recently, the SEC reached a separate settlement with cryptocurrency exchange Binance in which Binance will cooperate with the agency in its ongoing investigation. The agency is also nearing a settlement with Coinbase, but there are still some outstanding issues that need to be resolved.

What Is the Latest Development in Ripple’s Case?

According to a report byDecrypt, the SEC commissioners are planning to vote on accepting a $50 million settlement payment from Ripple in cryptocurrency. The vote is expected to take place on Thursday, July 13, at a closed-door meeting.

If approved, Ripple will pay the sum in its native XRP token to settle the SEC’s lawsuit, which began in December 2020. The agency sued Ripple in December 2020, alleging that the company raised $1.3 billion through an unregistered offering of XRP.

The case has since become a major point of contention in the rapidly evolving landscape of crypto regulation. Earlier this year, a federal judge ruled in favor of Ripple on two key issues.

Firstly, the judge found that the SEC’s chairman at the time, Jay Clayton, failed to provide clear guidance to the public on what constitutes a security. This lack of guidance, the judge stated, placed an “unreasonable burden” on investors to determine the status of an investment.

Secondly, the judge criticized the SEC for an abuse of its statutory power in policing the crypto market. Specifically, the judge took issue with the agency’s broad interpretation of its authority to register and regulate tokens.

This ruling, combined with the recent advancements in broader crypto legislation and the SEC’s increasing focus on registering crypto products, sets the stage for a potential settlement.

What Is Known About the Potential Settlement Terms?

As part of the pending settlement, the SEC is expected to drop its appeal of Judge Torres’s partial summary judgment verdict in favor of Ripple. Additionally, the agency will agree to dissolve the ongoing injunction that is currently preventing Ripple