Ripple CEO Brad Garlinghouse has indicated that the protracted legal battle with the U.S. Securities and Exchange Commission (SEC) may soon reach its conclusion. While offering no specific timeline, Garlinghouse expressed optimism about a forthcoming resolution during a recent interview with Bloomberg.
When asked when the protracted lawsuit would end, Garlinghouse said: “Very soon”.
The Long-Standing Lawsuit
The case, initiated in 2020, has centered on the SEC’s assertion that XRP is an unregistered security. A pivotal moment of last year was when Judge Analisa Torres ruled that XRP itself was not a security. However, the court determined that Ripple’s XRP sales to institutional investors were indeed investment contracts, thereby violating securities laws.
The outstanding issue now revolves around determining appropriate remedies for Ripple’s securities law violations. The SEC initially proposed a substantial fine of nearly $2 billion, subsequently reduced to $102.6 million. On the other hand, Ripple has countered with a proposed fine of no more than $10 million.
Despite the apparent impasse, speculation persists regarding a potential out-of-court settlement between the two parties. Recent reports suggested a closed-door SEC meeting scheduled for July 18th might be related to such a settlement. However, the meeting was ultimately postponed to July 25th, with the purpose of the gathering remaining unclear.
Ripple CLO’s Suggested Implications of the Ruling
The crypto industry has been closely watching the Ripple case, as its outcome could significantly impact the regulatory landscape for digital assets. A year after Judge Torres’ landmark ruling, Ripple’s Chief Legal Officer, Stuart Alderoty, highlighted the decision’s broader implications.
He noted that the ruling has influenced subsequent cases, such as the recent decision favoring Binance in a similar dispute. Alderoty characterized these decisions as recognizing the SEC’s overreach and legal inconsistencies under the leadership of Chair Gary Gensler.
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While acknowledging that the Ripple case is not entirely over, Alderoty expressed confidence that the core ruling on XRP’s non-security status remains intact. He emphasized that even the SEC has indicated no plans to appeal this portion of the decision.
In light of these developments, XRP’s price has exhibited bullish trends. According to data from CoinMarketCap, XRP is trading at $0.6137, reflecting a 2.34% increase in the past 24 hours and a 14.92% increase over the past week.
As the crypto industry awaits the final chapter in the Ripple-SEC saga, the coming weeks will be crucial in determining the potential consequences for Ripple, XRP, and the broader cryptocurrency market.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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