Garlinghouse: Banks Await Litigation For Ripple

Ripple CEO Brad Garlinghouse claimed that banking institutions like Bank of America are waiting for XRP’s status to use Ripple’s ODL system. In this context, Garlinghouse gave signals that they are looking forward to a possible agreement with the SEC.

Garlinghouse made important statements about his company at the Ripple Swell 2022 event held in London. Among them, it was important that the CEO of Ripple said that he is willing to settle if the SEC provides clarity for XRP. In addition, Garlinghouse stated that the US institutions are watching the case closely and claimed that many US banks intend to use Ripple’s services if Ripple makes an agreement with the SEC.

Highlighting Bank of America among these institutions, the CEO of Ripple thinks that the bank, which intends to use the Ripple ODL system, will gain a significant advantage if an agreement is reached to continue its activities in the USA. The history of this relationship dates back to November 2020. Just before the SEC filed a lawsuit against Ripple, Bank of America was announced as one of the members of RippleNet. Despite the ongoing litigation process, the bank remains among the companies in the network.

As Brad Garlinghouse has previously stated, his biggest condition for the deal is that XRP is not considered a security. However, as the SEC put this claim at the center of the case, it remains a matter of curiosity how to find a middle ground. On the other hand, this claim, voiced by Garlinghouse today, was among the Ripple rumors last week, and XRP saw a short-term jump in the pricing of these rumors, increasing its value by 10%.

Stuart Alderoty, Ripple’s General Counsel, said that the SEC does not have the authority to designate XRP as a security. Responding to an article by the New York Times, Alderoty underlined that the SEC has not been able to get XRP to be accepted as a security until now, emphasizing that it has no authority to do so. Stuart Alderoty said that as a correction to the article, the SEC just asked the court if XRP is a security, and the court will give that answer.