Ripple CEO Brad Garlinghouse expects the company's long-running dispute with the U.S. Securities and Exchange Commission (SEC) to be resolved in "single-digit months" and remains confident of a favorable outcome .
In an interview with CNBC on Jan. 18 at the World Economic Forum in Davos, Switzerland, Garlinghouse said that since the two sides had "well-articulated and fully presented" their arguments in U.S. District Court, the soonest possible Will make a ruling in June.
While Garlinghouse and investors believe that facts, law and the courts will ultimately side with Ripple, the Ripple CEO also took the opportunity to mock the SEC's "embarrassing" behavior throughout the proceedings.
Garlinghouse also argued that the company was betrayed by regulators because it filed the lawsuit despite efforts to meet with them on three separate occasions to seek regulatory clarity ““Not once did they say to me we think XRP may be a security. So to later go back and say hey the whole time we thought XRP was a security we just didn’t tell you… that doesn’t feel like a genuine partnership between public sector and private sector.”
SEC Chairman Gary Gensler insists that XRP and most of all crypto assets are securities. So, in his view, they need to be registered and subject to the same rules as stock brokerage firms. “This leaves very little room in the Venn diagram,” the Ripple exec said of Gensler’s myopic view of cryptocurrencies.
Gensler also stated that ethereum is a security because of its staking mechanism, which results in “the investing public expecting profits based on the efforts of others.”
Garlinghouse emphasized that a negative result for Ripple will affect the entire crypto industry and force the company to leave the country.
