In the wake of Ripple’s multiple victories over the U.S. Securities and Exchange Commission (SEC) and the impending end of the XRP lawsuit, Ripple CEO Brad Garlinghouse has revealed that he is hopeful for the company’s future in the United States.
According to the CEO while addresing the media during the just concluded World Economics Forum (WEF) Meeting held in Davos, now that XRP has legal clarity as a non-security, the U.S. market can open up some more for Ripple.
Garlinghouse noted, “My hope is that now that there is at least clarity for Ripple that XRP is not a security, that that opens up the U.S. market a little bit.”
XRP’s Journey to Legal Clarity
In December 2020, the SEC filed a lawsuit against Ripple, accusing the company and two of its executives of selling $1.3 billion in unregistered securities, precisely XRP.
Ripple countered, claiming XRP was a decentralized currency, not a security. The ensuing legal battle became a landmark case, and its outcome will surely shape the future of crypto regulation in the U.S.
After years of wrangling, Ripple recorded a landmark victory in July 2023 when the court deemed XRP sales to individual investors legal and not securities offerings, shaking the SEC’s case.
The pivotal ruling lifted a significant weight off Ripple’s shoulders, paving the way for broader adoption within the U.S. market. The influx of new investors after the ruling drove XRP’s price to a remarkable $0.93.
However, the fight isn’t over, as sales to institutions remain under scrutiny, and the SEC might appeal the case when it is over. Regardless of the SEC’s future actions, the lawsuit has exposed the SEC’s flawed regulatory strategy.
Many believe the courts will keep dealing blows to the SEC, slowly opening up the U.S. market for crypto companies, just like the Grayscale ruling, which paved the way for spot Bitcoin ETF approval in the country.
What are Ripple’s Plans?
In the interview at the World Economic Forum, Garlinghouse acknowledged the inefficiency of current cross-border payment systems. He advocated embracing and understanding blockchain technology and cryptocurrencies, recognizing them as an established and transformative force in the financial landscape.
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Ripple’s core mission is to revolutionize cross-border payments through blockchain-powered solutions, and Garlinghouse believes that the firm’s groundbreaking technology is a solution to cross-border payment problems.
However, understanding the challenges in the widespread adoption of any new technology, he pointed out that new, revolutionary solutions often face an initial period of hesitation and slow uptake. To bridge this gap, Garlinghouse believes in the power of interoperability and open collaboration.
Garlinghouse envisions a future where financial institutions embrace the interconnectivity crypto offers. Although Ripple could still enjoy a bright future in the U.S., the company is already considering an IPO in a different country. The SEC needs to get its act together before it start losing more companies to other countries.
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