In an interview with CNBC, Ripple CEO Brad Garlinghouse revealed that he was optimistic about the company’s future and its legal battle. The payment solutions company was sued by the United States Securities And Exchange Commission (SEC) in 2019 for alleged illegal sales of a security, XRP.
Related Reading | Price Analysis: Where XRP Goes After Ripple’s Big Win
Initially, the battle was expected to be an easy win for regulators. This had a negative impact on the price of XRP, the cryptocurrency that powers the XRP Ledger, and some of the payment company’s products.
However, Ripple has used its resources and seems to be turning the tables in its favor. In court, the payment solutions company presented evidence that the SEC learned about XRP and Ripple’s business model with cryptocurrency using a product called Ripple Network.
The evidence dates back to 2013 and includes documents suggesting that the SEC failed to clarify the classification of the digital asset as security. According to legal experts, the evidence could show the court that Ripple was actively seeking to remain compliant with US securities laws.
In this sense, Garlinghouse told CNBC the following about his perception of the state of the case:
The trial has gone extremely well, and much better than I could have hoped for when it started about 15 months ago. But the wheels of justice move slowly.
More evidence has come to light that may continue to favor Ripple. As CNBC pointed out, the judge hearing the case ruled against the SEC’s publishing of emails about how it dealt with XRP and other cryptocurrencies, including Ethereum.
The second crypto by market capitalization, there is currently no case pending against it as it is not considered a security. If Ripple can successfully assert that XRP and ETH function as decentralized cryptocurrencies, it could score a victory in its legal suit.
The ripple has hit bottom, only from here?
Despite the legal battle, Ripple has not experienced a downturn in its operations. According to its CEO, the company is “already operating in the worst case scenario”, but is seeing “record growth” outside the United States.
On the other hand, the XRP token is recording a profit of 7% in the last 24 hours, potentially in reaction to Garlinghouse’s statements. The market seems to be pricing any development around the SEC court case positively, but the macro outlook still looks unfavorable to risky assets.
On longer timeframes, the token is still trending lower away from its 2021 high of $2. A positive conclusion to the deal could send XRP to these highs.
Related Reading | Ripple against. SEC: XRP shows strength in legal fight as new evidence emerges
Garlinghouse added the following on the importance of Ripple’s case for the crypto industry:
This case is important, not just for Ripple; it is important for the entire crypto industry in the United States. It would be really negative for crypto in the United States (…). If you determine XRP as a security of Ripple, we need to know each person who owns XRP. This is an SEC requirement. You need to know all of your shareholders. It is not possible.