Ripple CEO Confident About Beating SEC Charges

Ripple Labs Inc, the company behind the XRP XRP/USD token, is making good progress in getting the charges levied against it by the SEC cleared, according to the company's CEO.

What Happened: In an interview with CNBC, Ripple CEO Brad Garlinghouse stated that the questions being posed by the judge appointed for the case bode well for the San Francisco-based company, with a final ruling on the matter coming next year. 

"We’re seeing pretty good progress despite a slow-moving judicial process," Garlinghouse stated.  "Clearly we’re seeing good questions asked by the judge. And I think the judge realizes this is not just about Ripple, this will have broader implications."

Why It Matters: Ripple, whose XRP token is the seventh biggest cryptocurrency in terms of market cap with a value of over $48.7 billion, found itself in the crosshairs of the SEC when the federal agency alleged that the company conducted an unregistered $1.3 billion offering of its token in the latter part of 2020. 

Ripple's defense hinges on the fact that XRP is classified as a currency rather than an asset class, meaning it does not need to be registered as an investment. 

Despite the ongoing struggles, XRP's value has risen 395% this year. The cryptocurrency traded 0.85% lower at $1.04 on Tuesday.