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Ripple sees ‘good progress’ in SEC XRP cryptocurrency case

In this photo illustration of the ‘altcoin’ ripple cryptocurrency is found arranged for a photograph on April 25, 2018 in London, England.

Jack Taylor | Getty Images News | Getty Images

Fintech firm Ripple is making great strides in its legal feud with the U.S. Securities and Exchange Commission, CEO Brad Garlinghouse told CNBC on Monday.

Garlinghouse said he expects the deal, which involves XRP, the world’s seventh largest cryptocurrency, likely to come to a conclusion next year.

“We’re seeing pretty good progress despite a slow court process,” he told CNBC’s Dan Murphy.

“Obviously we see good questions asked by the judge. And I think the judge realizes that it is not just about Ripple, it will have wider implications.”

Garlinghouse said he hopes there will be a shutdown next year.

Ripple, which is based in San Francisco, generated a lot of buzz during the crypto frenzy of late 2017 and 2018, which saw the prices of bitcoin, ether, and other cryptocurrencies skyrocket to peaks. peaks.

XRP, a token with which Ripple is closely associated, profited from this rally, reaching an all-time high above $ 3. It has since fallen considerably from that price, but is riding the latest wave of crypto with a gain of over 370% since the start of the year.

Ripple’s technology is designed to enable banks and other financial services companies to send money across borders faster and at lower cost. The company also markets another product that uses XRP for cross-border payments called On-Demand Liquidity.

The SEC is concerned about Ripple’s ties to XRP, alleging that the company and its executives sold $ 1.3 billion worth of tokens in an unregistered securities offering. But Ripple argues that XRP shouldn’t be viewed as a security, a classification that would subject it to much more regulatory scrutiny.

It comes as regulators around the world take a closer look at crypto, a still largely unregulated market that has exploded in the past year.

Garlinghouse said the UAE, Japan, Singapore and Switzerland were examples of countries showing “leadership” in crypto regulation, while China and India cracked down on the industry.

“Overall the direction of the trip is very positive,” Garlinghouse said.

Brady Dougan, the former CEO of Credit Suisse, said regulation is a key area of ​​crypto that is likely to grow over time.

“It’s a market that’s in its early stages of development,” Dougan, who now heads fintech company Exos, told CNBC. “I think it’s a healthy market and it’s a market that will continue to develop in a positive way.”

Ripple, a private company, was last valued at $ 10 billion and counts GV, Andreessen Horowitz and Japan’s SBI Holdings, the venture capital arm of Alphabet, among its investors.

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