The protracted legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) is nearing its end. According to JackTheRippler (@RippleXrpie), a prominent community figure on X, Judge Analisa Torres is currently deliberating on the final judgment in the case, which has captivated the cryptocurrency industry for several years.
The outcome of this case is anticipated to have profound implications for the cryptocurrency market, especially for XRP. A favorable ruling for Ripple could potentially propel XRP to new heights, given the pent-up demand and optimism within the XRP community.
Background of the Lawsuit
The SEC initiated the lawsuit in 2020, alleging that Ripple conducted an unregistered securities offering through the sale of XRP. However, Judge Torres ruled in July 2023 that non-institutional XRP sales don’t count as securities offerings and XRP itself is not a security. This ruling was a huge blow to the SEC’s case, leaving only institutional XRP sales as securities law violations.
The regulatory body then sought a substantial penalty of approximately $2 billion for Ripple’s institutional XRP sales. On the other hand, Ripple has maintained its innocence and proposed a penalty of $10 million.
Will Both Parties Settle Before the Final Ruling?
Recent speculations of a potential settlement between the SEC and Ripple have further complicated the case. A closed-door meeting held by the SEC on July 25 fueled these rumors.
The meeting initially scheduled for July 18 drew the attention of prominent figures in the cryptocurrency space, who revealed insider information suggesting that the meeting centered around the Ripple case and a possible settlement.
Another reason the SEC might choose to settle is the weakness in its case and the high chance its appeal will be unsuccessful. Brett Hill (@Brett_Crypto_X), noted on X that Judge Torres is keeping the window open for both parties to appeal past rulings.
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However, another prominent crypto personality revealed that the SEC cannot label XRP as a security because of Judge Torres’ ruling from July 2023. He believes the SEC will not appeal that decision, as the ruling has significantly weakened its case against Ripple. Appealing would not be a wise strategy as it could weaken the rest of the SEC case.
The final judgment will provide much-needed freedom for XRP and boost investor confidence. It could also set a precedent that could either deter or encourage the SEC’s legal enforcement strategy.
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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