The infamous XRP lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple, XRP’s parent company, is near its end, and the community is excited.
On stage at the XRPL Apex Summit, Ripple CEO Brad Garlinghouse stated that the company is nearing the “very very end” of the lawsuit. While an exact date has not been revealed, Garlinghouse jokingly suggested September 21, the end of Summer. Though he acknowledged the final decision rests with the presiding judge.
In December 2020, the SEC filed a lawsuit against Ripple for selling XRP, which the regulator claimed was an unregistered security. The SEC also sued Garlinghouse and Ripple’s executive chairman Chris Larsen, for aiding and abetting the unregistered security sales.
In July 2023, the court threw a wrench in the SEC’s case, ruling that non-institutional XRP sales are not securities offerings and XRP itself is not a security. Later in 2023, the SEC dropped all charges against Garlinghouse and Larsen, and now both parties are waiting for the judge’s ruling on the remedies for institutional XRP sales.
The SEC proposes a $ 2 billion fine for Ripple’s alleged violations of securities laws. However, the company pushed back at this, proposing a $10 million fine, partly because it did not financially harm investors. Both parties have filed all relevant briefs. They now wait for the judge to decide on the penalty.
Garlinghouse also expressed frustration with the American regulatory landscape. According to Garlinghouse, the U.S. is lagging behind the rest of the world on cryptocurrency regulation. This criticism extends to SEC Chair Gary Gensler, whom Garlinghouse accused of harboring a “pretty hostile” stance towards cryptocurrencies.
While the lawsuit focuses on financial penalties for Ripple, a definitive ruling from the court would free XRP from the uncertainty holding back many investors.
Read Also: Ripple CEO Garlinghouse: XRP Poised to Rival Bitcoin with Prospects of $10,000+
The resolution of this lawsuit will likely have a ripple effect throughout the cryptocurrency industry. A win for Ripple could pave the way for greater regulatory clarity in the US, potentially benefiting other digital assets. This could expose the SEC’s bad practices and potentially cause Congress to step in and provide proper guidelines for cryptocurrency use.
Conversely, an unfavorable outcome could impact XRP’s future and potentially discourage further cryptocurrency innovation within the U.S. An ex-Ripple director recently revealed that XRP’s price will not increase significantly until the lawsuit ends but believes an unfavorable outcome could hamper its growth.
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