If you have overinvested in crypto and everything in the market, you probably care about the outcome of every good and bad thing that happens. The latest SEC versus Ripple lawsuit drama has kept most people awake, unsure of the possible ending. A series of events have unfolded since the situation took motion. If you are not fully aware, this article delves into the dispute’s developments and the possible implications.
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The Market Relevance of Ripple (XRP)
The case began in 2013 when Ripple started selling the network’s XRP tokens as unregistered global payments. Initially, the World Economic Forum recognized XRP as relevant crypto for banks to use. Therefore, the label did not seem like an issue to Ripple, considering many states and organizations use its decentralized XRP Ledger.
Additionally, many countries have appreciated XRP as a digital currency and use it majorly for several exchanges and real-world asset transactions. Besides banks, most businesses use it to purchase goods and services and to pay employees.
The SEC’s Lawsuit News So Far
Would one label Ripple (XRP) as negligent? The SEC has handled close to 100 cases against cryptocurrency organizations, making the Ripple story another one on its long list. Regardless of Ripple seeking clarification to ensure its unregistered global payments were not a security, the SEC got to it. Ripple also went the extra mile to seek a settlement that proved a fair convertible digital coin by the Department of Justice.
The network also followed other cryptocurrency regulated laws, including registering with the Financial Crimes Enforcement Network within the Treasury Department.
The SEC filed a lawsuit against Ripple in 2020 labelled as Case 20-cv-10832. The commission alleged that the network and its co-founders, Bradley Garlinghouse and Christian Larsen squandered 600 million USD without lawfully registering XRP as a security.
Ripple’s Defense Against the Lawsuit
Ripple’s double-fold defense claims that the SEC didn’t give them fair notice of a legal crisis within the network. Additionally, Ripple emphasizes that every action they took was proactively regulated, considering they have not been named security but a currency. On seeking clarification on the suit from the SEC, Ripple claims not to have received any response, thus cannot identify the exact issue at hand.
Additionally, William Hinman, the SEC’s former director of the Division of Corporation Financing, gave a speech in 2018 that moved the cryptocurrency market. Hinman stated that ether sales and offers were not classified as security transactions. Many people found new confidence, and investors saw the clarity of the SEC’s standing on such tokens.
The Possible Outcome for Ripple (XRP) and Crypto
Following how the events unfold, the case might most likely resolve in 2022 if there were no other delays. Before then, every day the dispute remains unresolved is a nightmare for Ripple (XRP). The coin’s value has dropped intensely, and multiple exchanges have delisted it or suspended all activities relating to XRP, leaving people for the alternative to buy ripple with PayPal or with other payment methods, using only P2P Exchange and some other exchanges, who still support XRP. The network still has a good chance of recovering the 75% value it has lost the sooner the SEC concludes the lawsuit- or might never recover should the law rule against Ripple.
