In this photo illustration of a corrugated cryptocurrency “Altcoin” taken in London, England on April 25, 2018.
Jack Taylor | Getty Images News | Getty Images
Fintech company Ripple has made great strides in its legal dispute with the US Securities and Exchange Commission, CEO Brad Garlinghouse told CNBC on Monday.
Garlinghouse said he expected the center of the case to be RippleThe seventh largest cryptocurrency in the world may come to a conclusion next year.
“Despite the slow progress of the judicial process, we have seen pretty good progress,” he told CNBC’s Dan Murphy.
“Obviously, we have seen the judge ask good questions. I think the judge realizes that this is not just about Ripple, it will have a wider impact.”
Garlinghouse said he hopes it will close next year.
XRP is a token closely related to Ripple, benefiting from this rebound, hitting a record high of more than $3. Since then, the price has fallen sharply from that price, but in the latest crypto wave, the year-to-date increase has exceeded 370%
Ripple’s technology is designed to allow banks and other financial services companies to send money across borders at a faster rate and lower cost. The company also sells another product that uses XRP for cross-border payments, called on-demand liquidity.
The SEC is concerned about the relationship between Ripple and XRP, Allegations The company and its executives sold $1.3 billion worth of tokens in an unregistered securities offering. However, Ripple believes that XRP should not be regarded as a security, and this classification will make it subject to more regulatory scrutiny.
At the same time, regulators around the world are carefully studying cryptocurrencies. This market is still largely unregulated, but has flourished last year.
Garlinghouse said the United Arab Emirates, Japan, Singapore and Switzerland are examples of countries that have shown “leadership” in regulating encryption, while China and India have hit the industry.
“In general, the direction of travel is very positive,” Garlinghouse said.
Former Credit Suisse CEO Brady Dougan said that regulation is a key area in the crypto space and may evolve over time.
“This is a market in the early stages of development,” Dougan, who now runs the financial technology company Exos, told CNBC. “I think this is a healthy market, and it will continue to develop in a positive way.”