Ripple CEO Says SEC Lawsuit Is Almost At Its Ends, Here’s The Next Important Date

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As a long-term crypto investor with a keen interest in following regulatory developments, I have been closely monitoring the ongoing legal battle between Ripple and the SEC. Having witnessed the industry’s tumultuous history with regulatory uncertainty and crackdowns, I find myself both hopeful and cautious about the latest turn of events.

As a crypto investor, I’ve been closely following the ongoing legal battle between Ripple and the SEC, and I was intrigued when Brad Garlinghouse, Ripple’s CEO, recently shared his thoughts on the situation. With recent developments hinting at a possible resolution, I can’t help but feel curious about what lies ahead for this high-stakes case.

SEC’s Lawsuit Against Ripple Could Come To An End “Very Soon”

During an interview with Bloomberg, Garlinghouse expressed optimism that the SEC’s legal action against Ripple may conclude “soon.” However, he cautioned that they cannot precisely determine when the judge will render her decision. When probed about ongoing settlement negotiations between his firm and the SEC, Garlinghouse chose to remain silent.

In this ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC), the determination of the proper responses to Ripple’s violation of securities laws following Judge Torres’ ruling is the last remaining issue at hand. Although Judge Tores decided that XRP does not constitute a security on its own, she also classified Ripple’s sales of XRP to institutional investors as investment contracts. Consequently, Ripple breached securities regulations by distributing unregistered securities.

As an analyst, I’d rephrase it as: The SEC and Ripple have clashed over the suitable penalties for the alleged violations. Initially, the Commission proposed a hefty fine of nearly $2 billion. However, they subsequently revised their proposal to $102.6 million. In contrast, Ripple advocates that a fine not exceeding $10 million should be imposed upon them.

Despite their disagreements, rumors persist that Ripple and the SEC are in talks for a private resolution. Bitrue’s representative, Brett Hill, revealed that the originally scheduled closed meeting on July 18 might have been related to these negotiations between the crypto company and the regulatory body.

According to the SEC’s website, the closed-door meeting originally scheduled for July 18 has been rescheduled to take place on July 25. It is unclear at this time if the agenda relates to the ongoing Commission case against Ripple.

One Year On: The Impact Of Judge Torres’ Ruling

On July 13, it was a year ago that Judge Torres handed down a groundbreaking decision, classifying XRP as something other than a security in her ruling. In commemoration of this milestone, Ripple’s Chief Legal Officer, Stuart Alderoty, utilized his XRPL (previously Twitter) account to discuss the far-reaching implications of this judgment on the cryptocurrency sector since then.

Alderoty pointed out that Judge Torres’ ruling in the case has resulted in numerous similar judgments, with the Binance case being the most recent example. In this instance, US District Judge Berman determined that the sales of Binance’s BNB tokens did not constitute investment contracts. The Ripple CLO further commented that these decisions underscored the SEC’s “excessive reach” and “lack of adherence to the law under Chair Gensler.”

Alderoty acknowledged that the SEC’s case against Ripple is still ongoing, but he was confident that the court decision classifying XRP as a non-security would remain unaltered. Even the SEC has indicated in court that they do not intend to contest this determination.

Ripple CEO Says SEC Lawsuit Is Almost At Its Ends, Here’s The Next Important Date

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2024-07-22 20:11