Ripple CEO Expects Resolution in SEC Lawsuit Soon; XRP Price on Recovery Path

Ripple CEO Brad Garlinghouse recently shared his optimistic outlook on the ongoing SEC lawsuit, expressing hope for a resolution in the near future.

With issues around investment contracts and institutional sales still at play, the cryptocurrency community eagerly awaits further developments.

Meanwhile, XRP's price is on an upward trajectory, reflecting positive market sentiment amid these legal proceedings.

Brad Garlinghouse's Optimism on SEC Lawsuit

In an interview with Bloomberg on July 18, 2024, Ripple CEO Brad Garlinghouse expressed optimism about resolving the ongoing lawsuit with the U.S.

Securities and Exchange Commission (SEC) regarding the security status of the cryptocurrency XRP. Garlinghouse stated, "We expect a resolution in the near future."

Garlinghouse made these remarks in response to a question about settlement negotiations with the SEC at the end of the interview. He commented, "Issues concerning investment contracts and institutional sales remain, but we expect to resolve them soon."

While specific details were not disclosed, Garlinghouse emphasized that the judge’s ruling was clear. The primary issues remaining are related to investment contracts and institutional sales.

Although Ripple anticipates a resolution soon, predicting the exact timing of the judge's decision is challenging.

The SEC has claimed that Ripple's sales of XRP constituted unregistered securities transactions. However, the Southern District Court of New York ruled in July last year that XRP itself is not a security.

Despite this ruling, the court noted that the method of XRP sales could influence the legal interpretation.

Specifically, the court determined that Ripple's sales of XRP to institutional investors violated securities laws, leaving issues regarding investment contracts and institutional sales unresolved.

Upcoming SEC Meeting and Potential Settlement

A non-public meeting of the SEC is scheduled for July 25, 2024, to discuss "initiating administrative proceedings, resolving litigation claims, and other matters related to investigations and enforcement procedures."

There is speculation that a settlement announcement with Ripple might follow this meeting.

As the U.S. presidential race draws attention to cryptocurrency regulations, Garlinghouse emphasized that "cryptocurrency regulation should not be a partisan issue."

He noted that there is growing momentum in both the Republican and Democratic parties to advance cryptocurrency legislation.

The anticipation of a resolution to the SEC lawsuit has positively impacted XRP's price. The cryptocurrency community is closely monitoring updates related to the lawsuit, contributing to the upward trend in XRP's market value.

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