Ripple vs. SEC Lawsuit: Is Resolution Imminent? CEO Brad Garlinghouse Involved

The legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) dates back to December 2020 when the regulatory body accused the company and some executives of conducting unregistered securities offerings through certain XRP sales.

Over the past few years, the lawsuit has seen numerous developments and entered the trial phase in April 2024. Some believe that Ripple gained an advantage due to three partial court victories in 2023.

The most significant victory occurred nearly a year ago when Judge Torres ruled that the company’s programmatic sales to secondary trading platforms did not constitute investment contract offers.

Subsequently, the district court rejected the SEC’s appeal, clearing Ripple’s CEO Brad Garlinghouse and Executive Chairman Chris Larsen of all charges brought by the commission.

The final outcome of the case remains undisclosed, given the legal complexities and potential appeals from both sides. However, experts speculate that a settlement may be on the horizon.

U.S. attorney Jeremy Hogan suggests that formal resolution could come before the end of summer, while Fred Rispoli identifies July 31 as a possible settlement date.

Garlinghouse, Ripple’s CEO, also shared his perspective, expecting a swift resolution. He did not disclose whether his company and the SEC are currently engaged in settlement negotiations but mentioned a “final step” before the case concludes:

“The judge’s ruling has been quite clear. There’s one last piece regarding investment contracts sold to institutions. We anticipate a decision soon, although we cannot predict precisely when the judge will rule.”

XRP Price Outlook

Anticipation of the case’s imminent resolution has positively impacted XRP valuation. On July 18, the token briefly surpassed $0.63, reaching its highest level since March, with a market cap exceeding $34 billion before settling around $32.5 billion. Consequently, XRP briefly became the sixth-largest cryptocurrency.

Sentiment: Positive