Key takeaways:
- Ripple CEO Brad Garlinghouse told CNBC that he expects the lawsuit with the SEC to end this year
- The CEO said that the company will explore IPO opportunities after its court saga with the US top financial regulator comes to an end
- Garlinghouse also said that the US needs greater regulatory clarity when it comes to the cryptocurrency sector
Ripple CEO expects the SEC lawsuit to end this year, hopes for greater regulatory clarity regarding crypto
Speaking to CNBC during the World Economic Forum in Davos, Ripple CEO Brad Garlinghouse revealed that the company behind the popular XRP cryptocurrency will explore initial public offering (IPO) opportunities after the lawsuit with the US Securities and Exchange Commission (SEC) ends.
Garlinghouse expects the lawsuit with the US top financial regulator to end this year. As a reminder, the SEC filed a lawsuit against Ripple and its top executives in December 2020, accusing the company of selling $1.3 billion worth of XRP tokens through an unregistered securities offering.
The resolution of the lawsuit could have huge implications for the cryptocurrency industry – if the court determines XRP is indeed a security, a huge swath of digital assets could be legally categorized as securities which could present significant legal barriers and introduce liabilities for the companies that issue them.
In April, Garlinghouse told CNBC at Paris Blockchain Week that the lawsuit with SEC is going better than he had anticipated. When interviewed on Wednesday, the CEO called for greater regulatory clarity in the US and said he is “hopeful” the SEC won’t drag out the court proceedings more than they already have.
The top Ripple executive also said that the payments using the fintech company’s On-Demand Liquidity service reached $8 billion in Q1 2022, which is an eight-fold increase from the year prior.
