Ripple CEO Brad Garlinghouse notes that companies such as the Bank of America would benefit big if Ripple Labs settles with the United States Securities and Exchange Commission (SEC). In a broader view, he remains confident that the XRP lawsuit would end in favor of the cross-border payments firm Ripple.
During the just-concluded Ripple Swell 2022, Brad Garlinghouse discussed his expectations on the XRP lawsuit. He spoke about the possibility of a settlement between Ripple and the SEC.
Read Also: Ripple General Counsel Reacts to NY Times Article: SEC Has No Power to Label XRP a Security
Ripple’s Condition To Settle With the SEC
A settlement in the Ripple-SEC lawsuit means that the SEC would have to agree that XRP is not a security, which will result in the dismissal of the court litigation. In other words, the SEC would drop its securities claim on XRP, while also providing clarity on the embattled cryptocurrency. It is on these grounds that Brad Garlinghouse said Ripple would agree to a settlement.
While a settlement may lead to XRP rallying in price, the Ripple CEO mentioned that the Bank of America stands to gain big if a settlement happens in the Ripple-SEC case. The Bank of America is a huge part of the crypto solutions company as it is a member of the RippleNet Committee.
Read Also: XRP Recovers By Over 12% On Ripple-SEC Settlement False Rumor
Per the Tuesday update by Linqto Director of Member Sales Nick Burrafato, Brad Garlinghouse stressed that the top financial institution, Bank of America, will have a huge competitive advantage over others by using Ripple’s On-Demand Liquidity (ODL)On-Demand Liquidity (ODL) in the marketplace.
Ripple Labs CEO Brad Garlinghouse stated to Linqto Director of Member Sales Nick Burrafato at Ripple Swell 2022 in London that "Bank of America is going to gain a competitive advantage when the SEC v Ripple case settles, by using ODL in the marketplace." https://t.co/y8g5cOdYZT pic.twitter.com/RDzGgmj8GV
— Linqto (@linqtoinc) November 21, 2022
So far, the SEC has presented no substantial evidence in Court to prove that XRP is a security. The agency only strives to win the lawsuit using the Howey Test.
Jeremy Hogan, a top attorney and partner at Hogan & Hogan law firm, noted that the SEC won’t win the XRP case using just one element of the Howey Test. This one element is the “expectation of profits on the efforts of others” prong.
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