Ripple vs SEC Lawsuit Update as of February 10, 2024

The Q4 2023 report recently released by Ripple sheds light on ongoing developments in its legal battle with the U.S. Securities and Exchange Commission (SEC). The report highlights a key update regarding Ripple’s XRP sales strategy, showcasing its commitment to legal compliance.

XRP Sales Restructured

The report reveals that Ripple has proactively restructured its XRP sales strategy to align with “legal standards articulated by the court” in the ongoing XRP lawsuit. The company implemented this strategic shift before the court issued its highly anticipated summary judgment decision in July last year.

This proactive approach underscores Ripple’s dedication to operating within legal boundaries and upholding transparency in its business practices despite the lawsuit’s outcome.

Transparency and Compliance as A Top Priority

Ripple emphasized its commitment to “raise the bar on compliance, ethics, and transparency.” The company also pledged to invest the necessary resources to ensure its compliance with the law, reflecting its understanding of the critical role compliance plays in building trust and fostering innovation in the crypto world.

Addressing Injunction Concerns

Ripple’s proactive restructuring of its XRP sales strategy is more significant now, considering the recent developments in the Ripple-SEC lawsuit. Concerns arose within the XRP community following the recent decision to grant the SEC’s request for access to Ripple’s financial records despite the company’s counterarguments.

This access could potentially inform the court’s decision on issuing an injunction against Ripple, potentially restricting future XRP sales to institutional investors.

However, Ripple’s strategic shift aims to mitigate these concerns. By restructuring its sales to comply with legal standards, Ripple seeks to assure the community that its XRP sales activities adhere to all applicable regulations.

Additionally, legal experts like Attorney Bill Morgan have downplayed the impact of a potential injunction, suggesting alternative sources for XRP, such as secondary markets, could remain available to ODL customers.

Beyond the sales strategy update, the report also provides a concise overview of significant events in the SEC lawsuit over the past few months.

It highlights Ripple’s three consecutive victories over the SEC, which include the July 13 ruling declaring programmatic sales and other XRP distributions as non-securities, the court’s denial of the SEC’s interlocutory appeal request, and the dismissal of all claims against Ripple executives Brad Garlinghouse and Chris Larsen.

What’s Next?

However, the lawsuit is not over, as the July ruling determined that certain historical institutional sales of XRP constituted violations of securities laws.

Currently, the lawsuit is in the remedies phase, where the court will determine appropriate consequences for these violations. Both parties will submit their briefs between March and April 2024, followed by the court’s final decision on the appropriate remedies for Ripple.

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Tobi Loba

Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.